KUALA LUMPUR, September 26 – Sales at IKEA stores in Southeast Asia topped MYR 3 billion for the first time this year, reflecting healthy growth for a big-box retail business that is meeting a new generation of shoppers and creating fresh passion for home furnishing.
More than 3,400 co-workers in the region met around 98 million visitors in the stores and centres. IKEA Southeast Asia also opened IKEA Batu Kawan in Penang, managed construction of the Toppen shopping centre in Johor Bahru and sold 113,000 BILLY bookcases – along with thousands of other affordable home furnishings that make everyday life at home a little better.
As one of 12 IKEA franchisees around the world, the turnover posted by its eight large, full-format IKEA stores in Southeast Asia – including four in Malaysia – contributed to the total result released on Wednesday by the global franchisor, Inter IKEA Group. Its financial year runs from September 1, 2018 to August 31, 2019.
IKEA Southeast Asia owns and operates IKEA stores and ecommerce platforms in three active markets: Malaysia, Singapore and Thailand. The combined revenue generated from retail sales and rental income across three of its IKEA-anchored shopping centres in the region reached a total of MYR 3.7 billion, recording a 20% increase from last year.
“These results show that our IKEA stores and shopping centres have fantastic potential to grow,” said Christian Rojkjaer, Managing Director of IKEA Southeast Asia. “We make a difference to many people by making life more comfortable, more beautiful, more sustainable – at an affordable price.”
“We face increasing competition in our markets and changing customer behaviour,” he added. “But our vision to create a better everyday life for the many people is perhaps more powerful than ever. We aim to offer the best deal there is in every market and we have a wide price ladder within our range so, even in tough times, IKEA has something for everyone no matter the size of his or her wallet.”
“Our shopping centres add to the total value by creating meeting places that are the hub of the community – and, together with IKEA, provide a great day out.”
Part of the Ikano Group, IKEA Southeast Asia is the franchisee that owns and operates IKEA stores in Malaysia, Singapore and Thailand. Locally, the company operates four IKEA stores i.e. IKEA Damansara and IKEA Cheras in Klang Valley, IKEA Tebrau in Johor and IKEA Batu Kawan in Penang, as well as two shopping centres including IPC Shopping Centre and MyTOWN Shopping Centre.
The Toppen shopping centre, anchor for IKEA Tebrau in South Malaysia, is opening on November 13, 2019 with a rooftop that features water play, community gardens, exercise space and alfresco dining.
Malaysia FY19 Highlights
IKEA Damansara | IKEA Cheras |IKEA Tebrau | IKEA Batu Kawan | IPC Shopping Centre | MyTOWN Shopping Centre
- Opened IKEA Batu Kawan in Penang, bringing affordable home furnishing to people in Northern Malaysia and selling 32,188 Swedish meatballs on the first day of operations
- In Penang, prepared for opening of a 7,600-sqm retail space linked to our IKEA Batu Kawan store in December 2019
- First full year of IKEA ecommerce business in Malaysia, delivering to people across the Peninsular Malaysia and in East Malaysian cities of Kota Kinabalu, Kuching and Miri
- MyTOWN and IPC leased more than 95% of shop space to tenants in active entertainment, co-working, F&B and more to create inspiring meeting places for the community
- The project management teams and buildings received prizes and certifications that recognised its safe construction sites, outstanding sustainability features and operations – with IKEA Cheras winning the
- Green Building award for large buildings from the ASEAN Centre for Energy
IKEA Southeast Asia FY19
- 7 million visits to IKEA websites with new navigation and inspiration – up 16% from last year
- 850,000 energy-saving LED lightbulbs sold to customers across the region
- 353,000 IKEA orders delivered to homes in our three markets – up 38% from last year
- 700,000 pieces of furniture assembled for our customers – three each minute!
- 28,102 solar panels generating renewable energy from our rooftops and reducing our costs
- 1,448 shops and kiosks for tenants in three shopping centres (including IKEA stores)
- 42% increase IKEA Business sales to customers who furnish and decorate everything from restaurants to apartment show suites with IKEA products
- 2 new stores under construction: in Philippines and Mexico, where we are also the franchisee
Learn more about the franchise system and IKEA facts & figures on our new brand platform: About.IKEA.com