#jon abrahamsson ring

[alwaysbewoke]

[head-post]

IKEA sales fall 5% after price cuts amid weak housing market

IKEA’s annual sales fell 5 per cent after the company cut prices in a bid to attract more customers and maintain its share of the shrinking home furnishings market, according to Reuters.

Ingka Group, which owns most of IKEA’s shops worldwide, reported sales of €39.6 billion ($43.3 billion) for the fiscal year ended 31 August, CEO Jesper Brodin said.

In all our markets we experienced a slowdown of the economy and a slowdown of the home furnishing industry, almost simultaneously. We never experienced anything like that since 2008, to be honest.

Brodin stated that after seeing a decline in shop visits and sales, IKEA decided to lower prices, which increased footfall and the number of products sold, Brodin reported. However, IKEA benefited from households bargaining cheaper as the slowdown in the global property market undermined confidence, according to Tolga Oncu, retail manager at Ingka Group.

IKEA expects sales to rise in 2025 as lower interest rates force more people to move, which usually leads to buying beds, sofas and bookshelves. Oncu anticipates people will spend more time at home rather than going out this holiday season as budgets continue to be constrained by inflation.

Inter IKEA Group, which owns the IKEA brand and makes goods, reported annual sales of €45.1 billion ($49.3 billion) across all franchisees. That figure was down 5.3 per cent from 2023, mainly due to lower prices for raw materials such as wood.

Inter IKEA CEO Jon Abrahamsson Ring said another price cut was planned for the 2025 financial year, which began on 1 September.

Read more HERE

[opticien2-0]

More than a quarter of Ikea sales take place online following 73% ecommerce growth

Ikea's latest format store in China. Image courtesy of Ikea

Ikea online sales grew by 73% in its latest financial year to account for more than a quarter (26%) of retail sales.

  News of the growth came as Ikea Inter Group, the Ikea franchise business, reported that Ikea retail sales across its different channels reached €41.9bn (£35.3bn) in the 2021 financial year, to August 31 2021, as the business started to recover from the effect of Covid-19. That’s up by 5.8% on last year, and by 1.5% compared to the previous year. While 26% of sales were online in the latest year, 71% took place in stores and 3% were through services. During the year the retailer stopped producing the Ikea catalogue, in response to shoppers’ changing behaviour. More than 5bn visitors visited its website during the year.

  During the year Ikea opened 45 new shops, including its first sites in Mexico and Slovenia, and plans to open nearly 60 in the current financial year - and then open an average of 50 new shops a year in 17 markets by the end of its 2023 full year. “All so our customers can touch and try Ikea products before they buy,” says Jon Abrahamsson Ring, chief executive of the Inter Ikea Group, the Ikea franchise business.

  Ring said the business had seen a “substantial drop in availability” during the 2021 financial year, making it a challenge to keep Ikea stores and warehouses in stock – and one that is likely to continue in the current financial year. Transport and raw material prices are increasing at the same time.

  Ring says: "At Ikea, we want to be affordable for as many people as possible. Despite rising costs, we’ll continue to provide great, responsibly-produced products at the lowest possible prices."

  The retailer’s supply chain accounts for two-thirds of its climate footprint, including production at suppliers. It has responded with a programme to help suppliers move to 100% renewable energy, and that nearly 90% of its own business Ikea Industry, is now powered by renewable energy. It is also selling next-generation LED bulbs in-store – with 620m sold so far.

  Ikea is a Top150 retailer in RXUK Top500 research.

[inventivaindia]

Furniture retailer IKEA appoints a new CEO

Furniture retailer IKEA appoints a new CEO

Jon Abrahamsson Ring, a former assistant to furniture retailer IKEA’s founder Ingvar Kamprad, has been named the new chief executive officer (CEO) of the Inter IKEA Group, the company said Tuesday.

Abrahamsson Ring, 45, will take over the reins on September 1, replacing Torbjorn Loof, 54, who resigned after seven years at the head of the group, it said in a statement.

Under Loof’s management,…

[opticien2-0]

IKEA makes marketplace debut, opening flagship store on China’s Tmall

IKEA is using marketplace to ease its way into China

IKEA has opened a flagship store on Alibaba’s Tmall platform in China. This is the first time that the world’s biggest furniture brand has made its products available on a third-party marketplace.

  IKEA’s choice of Tmall as its only – and first – third-party marketplace shows global brands recognise Tmall is the most-effective entry point to expand into the world’s second-biggest economy, China. Home to hundreds of thousands of top brands, Tmall is the preferred platform for brands seeking to digitize their China operations and forge a better understanding and closer connection with consumers in China.

  The tie-up also underscores IKEA’s and Tmall’s shared goal of meeting consumers’ pursuit of a more comfortable and convenient lifestyle.

  “IKEA is the world’s leading home furnishing retailer and loved by many Chinese consumers,” says Jiang Fan, president of Tmall and Taobao at Alibaba Group. “It is truly exciting for us to help IKEA explore online channels and to enable more Chinese consumers to purchase IKEA products with greater convenience.”

  The opening of the flagship store will make the IKEA brand and products more accessible to Chinese consumers and lets IKEA learn how to engage with customers nationwide in a new way. The digital shop features around 3,600 IKEA products and home furnishing items.

  “At IKEA, we are very proud of our IKEA stores, but we are always eager to learn how to improve our service. We are happy about this collaboration with Alibaba. I’m convinced that we will learn a lot and develop even better ways to meet our customers,” adds Jon Abrahamsson Ring, managing director of Inter IKEA Systems B.V.

  China, as a market, has undergone strong digital development and now offers advanced and unique digital solutions for brands and consumers. The collaboration with Tmall exemplifies IKEA’s commitment to bringing the brand closer to the many Chinese consumers both online and offline by offering diverse meeting points, which Chinese consumers prefer, said IKEA.

  Inter IKEA Systems B.V. (owner of the concept and global franchisor), IKEA Retail China and Tmall cemented their partnership via an online signing ceremony held concurrently in Shanghai and Hangzhou.

from InternetRetailing https://ift.tt/2wIuxwl via IFTTT