Hyderabad: With Rs.2 Crore every day in its first year of operations in the country, Ikea, the world’s largest furniture retailer crossed Rs 400 crore total revenue in FY 19. The company opened its maiden store in India in August last year.
“In the next 8 to 15 years, we are likely to open more than 25 stores. We will open (the big store) in Mumbai next year and then Bengaluru will happen in one-and-a-half years. We have sites in Delhi where we will open stores including our shopping centre and meeting place. So, we have plans for big stores but we have many more plans for smaller store formats in the city which will range between 5,000 sq.m to 10,000 sq.m. So, there will be many more opportunities for our consumers to meet IKEA, and there will be many more meeting places than just 25,” said Peter Betzel, IKEA India chief executive, while in Delhi to attend Business Sweden event.
Ikea’s revenue stands as a record for any brand in the country with just one store, that too in its debut year. The Swedish retailer generated Rs 407 crore in seven months in FY 19, as mentioned in a report in The Economic Times. The report stated that the company faced a loss of Rs 685 crore in FY 19 due to initial investments. The retailer had incurred a net loss of Rs 368 crore in FY 18 over its infrastructure, staff cost and training, distribution centres and corporate expenses.
The Swedish furniture giant said in its filing with the Registrar of Companies that millions of visitors visited the Ikea store and the turnover of the outlet is also as per the expectations of the company.
Ikea’s revenue numbers are at par with its rival Urban Ladder and twice of PepperFry.
An estimated 40,000 people visited the Ikea’s big box store in Hyderabad’s Hitec City on the opening day. The company plans to open 25 stores in the country, each large enough to fit four football fields. The Foreign Investment Promotion Board (FIPB) has so far cleared the company’s Rs 10,500-crore investment plan. Ikea has received Rs 2,515 crore from its global parent so far.
Ikea, the world’s largest furniture retailer crossed Rs 400 crore in total revenue in FY 19. The company sold goods worth Rs 2 crore every day on an average in its first year of operations in the country. The company opened it maiden store in India in August last year.
Ikea’s revenue stands as a record for any brand in the country with just one store, that too in its debut year. The Swedish retailer generated Rs 407 crore in seven months in FY 19, as mentioned in a report in The Economic Times. The report stated that the company faced a loss of Rs 685 crore in FY 19 due to initial investments. The retailer had incurred a net loss of Rs 368 crore in FY 18 over its infrastructure, staff cost and training, distribution centres and corporate expenses.
The Swedish furniture giant said in its filing with the Registrar of Companies that millions of visitors visited the Ikea store and the turnover of the outlet is also as per the expectations of the company.
An estimated 40,000 people visited the Ikea’s big box store in Hyderabad’s Hitec City on the opening day. The company plans to open 25 stores in the country, each large enough to fit four football fields. The Foreign Investment Promotion Board (FIPB) has so far cleared the company’s Rs 10,500-crore investment plan. Ikea has received Rs 2,515 crore from its global parent so far.
Ikea entered the online space in August this year with its online delivery system. Three months later it launched two trucks in Mumbai that offers Ikea products to mark its physical presence in the city.