Ikea with decline in sales in financial year 2023/24
Published: Wednesday, Oct 30th 2024, 11:20
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Ikea recorded the same number of visitors to its Swiss stores in the financial year ending in August as in the previous year. Nevertheless, the local branch of the Swedish furniture store chain was unable to match the previous year's record sales.
In total, 13.5 million people visited one of the ten Ikea furniture stores or one of the three plan-and-order points between the beginning of September 2023 and the end of August of the current year. The number of visitors thus remained constant, as Ikea Switzerland announced on Wednesday.
However, sales fell by 3.4 percent to 1.24 million Swiss francs. According to the press release published on Wednesday, the reason for this is that the company reduced the prices of more than 2,000 items last year.
As Janie Bisset, Head of Ikea Switzerland, explained at a media conference, further price reductions are also planned this year. "This is a global initiative by Ikea," she said. Corona has had a major impact on material prices. "Now we want to go back to the pre-pandemic level," said Bisset.
More online orders
According to the press release, around half of customers booked an additional service. For example, they had the furniture delivered to their home, had it assembled in their apartment or planned their new furnishings at one of the so-called plan-and-order points or with Ikea's online advice service.
The proportion of online orders rose again, according to the report. As a result, 27.5 percent of all purchases were made online. In the previous year, this figure was 25.7 percent.
4.6 million hot dogs sold
However, Ikea is not only known for its furniture, but also for its affordable food. According to Bisset, the company sold 4.6 million hot dogs last year.
While sales in the furniture segment fell, revenue in the food service segment increased by 2 percent. Ikea made 72 million in sales with food.
A family of four like her own could eat at Ikea for less than 30 francs on Friday, when Ikea sells food at half price. "That's very important in times of lower purchasing power," said the company boss. "You could say we are the biggest restaurant in Switzerland," said Bisset.
©Keystone/SDA
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