CONSHOHOCKEN, Pa. — Ikea reported that sales for its fiscal year 2012 grew by 9.5% and profits were up 8% to $4.2 billion, thanks to its model of offering low-cost, functional furniture. Comparable-store sales were up 8% at its U.S. stores.
“The Ikea business idea is more relevant than ever. People around the world are more value conscious and appreciate beautifully designed and functional home furnishing solutions at affordable prices. In FY12, we managed to grow in most markets. The markets where we grew the most were China, Russia and Poland, closely followed by the US and Germany. We opened 11 new stores and welcomed 8,000 more co-workers,” says Mikael Ohlsson, president and CEO of the Ikea Group.
Ikea also highlighted some of its accomplishments during the year including its new sustainable strategy to invest $1.9 billion in renewable energy and its increased donations to help children in the developing world.
In the United States, Ikea plans to remodel Marketplace, the section of the store which sells home furnishing accessories such as cookware, bed linens, lighting and rugs. During 2012, 13 stores across the United States received Marketplace remodels and during 2013, 17 more will be completed.
“Sales results show that people are continuing to find Ikea the leader in life at home; the place to shop for quality home furnishing solutions at great prices. Despite a challenging economic environment, what we offer is relevant to more and more customers. We remain dedicated to growth, a great shopping experience, as well as being a business strongly committed to sustainability. This includes a strong focus on renewable energy initiatives, as well as being socially responsible,” commented Mike Ward, Ikea US President.