The IKEA Group Releases Results Showing Strong Growth and A Clear Focus on Helping Customers Live a More Sustainable Life at Home
BURLINGTON, ON, Jan. 28, 2015 /CNW/ - Today The IKEA Group has released its yearly summary for the financial year 2014, showing a net income amounted to EUR 3.3 billion. Market conditions continued to improve with strong performance in China and North America, and an upward trend in Europe. In 2014, there were 716 million visits to the IKEA Group stores and more than 1.5 billion visits to IKEA.com.
"FY14 was a good year for IKEA. I am happy to see increased growth in all our sales channels; in existing stores, in the opening of new stores and in e-commerce. Sustainability is an integral part of our business strategy. We reached some important milestones toward becoming energy independent and saw a 58% increase in the sales value of products that enable people to live a more sustainable life at home." says President and CEO Peter Agnefjäll.
Total sales increased by 5.9% (adjusted for currency impact) from last year to EUR 28.7 billion. Together with the rental income from the shopping centre business, total revenue amounted to EUR 29.3 billion (+2.8%). The IKEA Group gained market share in almost all markets and entered a new country – Croatia. The largest markets in terms of sales were Germany, US, France, Russia and the UK.
"I am pleased that IKEA Canada has contributed to the overall success of IKEA globally. In Canada, we have seen a sales increase of 5.2% from last year and visitation has increased by 3%," says Stefan Sjöstrand, President IKEA Canada. "Given the current retail environment, we are confident that our growth shows that we are delivering the products, quality and services that Canadian consumers are looking for. "
"We have an ambitious growth agenda and at the same time we're determined to have a positive impact on people and the planet. Our size gives us a unique opportunity to make a difference and contribute to positive change in society, for instance by making energy-efficient lighting both affordable and attractive for millions of people," continues Peter Agnefjäll.
Within its own operations, the IKEA Group produced renewable energy equivalent to 42% of the total energy consumed and aims by the end of 2015 to have invested and committed to invest EUR 1.5 billion in renewable energy projects, mainly offsite wind farms and photovoltaic (PV) panels. This includes IKEA Canada'spurchase of a 46 megawatt (MW) wind farm in Pincher Creek, Alberta. The 20-turbine wind farm is the largest owned by a Canadian retailer and is expected to generate 161 gigawatt hours (GWh) each year, which is more than double the total current energy consumption of IKEA Canada or the equivalent energy consumption of 32 IKEA stores.
In FY14, EUR 200 million were set aside to a new loyalty programme Tack! and the amount for the One IKEA Bonus Program was increased by EUR 98 million, as a thank you to IKEA's co-workers.
"A key factor to our strong performance is that we have a long-term view, and don't aim to maximise short-term profits. We strive to continuously create better products at lower prices for our customers and to make substantial investments in our future," says Peter Agnefjäll.
About IKEA Group
The IKEA vision is to create a better everyday life for the many people. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. The IKEA Group with 147 000 co-workers, has 315 stores in 27 markets and operations in more than 40 countries. E-commerce is offered in 13 markets. There are more than 40 stores run by franchisees outside the IKEA Group. For more information, please visit www.IKEA.com
About IKEA Canada:
IKEA is a leading home furnishings retailer with 315 stores in 27 countries worldwide, which are visited by 716 million people every year. IKEA Canada has 12 stores which are visited by over 25 million people every year. Last year the IKEA.com websites attracted 1.5 billion visitors. Founded in 1943, IKEA's business philosophy is to offer a wide range of products of good design and function at prices so low, the majority of people can afford them. For more information on IKEA, please visit: www.IKEA.ca.
SOURCE IKEA Canada
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