IKEA Philippines, the local business of the Swedish furniture maker, posted a turnover of P8.7 billion during its latest financial year that ended on Aug. 31 amid higher revenue, according to its franchisee and operator Ikano Retail.

Ikano Retail, which operates IKEA Pasay City, said its omnichannel business with e-commerce, click-and-collect pick-up points, IKEA food, and IKEA for Business saw a double-digit jump in revenue.

“[IKEA Pasay City] saw a bump in revenue from last year, up 28.3% as it closed its 2023 financial year on Aug. 31 with a turnover of P8.7 billion,” Ikano Retail said in a statement on Tuesday.

IKEA Pasay City, the largest IKEA store in the world, logged 17 million visits during the 2023 financial year. No comparative figures were provided.

Meanwhile, Ikano Retail posted a P65.4-billion (1.08 billion euro) turnover in its 2023 financial year.

Ikano Retail, one of the 12 IKEA franchisees globally, operates IKEA stores in the Philippines, Singapore, Malaysia, Thailand, and Mexico. The company has 13 IKEA stores and five IKEA-anchored shopping centers in its portfolio.

“The retailer’s revenue rose 2.1% year on year as it posted mixed performances in its five markets despite welcoming more visitors this year to its stores and centers,” Ikano Retail said.

According to Ikano Retail Chief Executive Officer Christian Roejkjaer, the company’s IKEA stores and shopping centers saw more customer visits during its 2023 financial year.

“It continues to be tough economic times for all retailers, including us, with higher costs all along our value chain, inflation and a more cautious consumer sentiment. Despite that, our IKEA stores and shopping centers attracted 119.6 million visits, up 5.7% from last year,” Mr. Roejkjaer said.

“We continue to add value to communities feeling the pinch by offering affordable home furnishing solutions, inspiring stores and a great day out together with our shopping centers,” he added.

Mr. Roejkjaer said the company has created more ways for customers to meet and shop in IKEA.

“We launched remote planning by taking our IKEA Planning studio online in the Philippines to meet faraway customers, expanded our fleet of electric vehicles in Singapore which now supports 20% of our home deliveries, opened three new collection points in Malaysia to meet customers in states without an IKEA store,” Mr. Roejkjaer said.

“We are on our way with two new exciting stores — Thailand’s first IKEA store in the heart of metropolitan Bangkok with IKEA Sukhumvit, and Mexico’s first stand-alone IKEA store in Mexico with IKEA Guadalajara Expo,” he added. 

Meanwhile, Ikano Retail said that storage products had the highest sales among products across its 13 stores led by the Malm chest of four drawers, Billy bookcase, and the Kleppstad wardrobe. 

“Customers across Ikano Retail’s five markets were also refreshing their tableware, with more than 5.5 million plates, side plates and bowls sold from the OFTAS collection,” Ikano Retail said. 

“IKEA Food continued to be a hit among shoppers in Ikano Retail markets as the company recorded 14.5 million visits across all its IKEA restaurants, cafes, bistros and Swedish Food Markets, with visits up 13% and total sales up 11.7% from last year,” it added. — Revin Mikhael D. Ochave