Although the past year has been a challenging time for the retail business, IKEA Thailand has continued to reduce prices on around 2,400 items and announced a reduction in delivery service fees to help customers cope with rising living costs.

Ikano Retail, the franchise holder of IKEA, imports Swedish home goods and decorations to Thailand, Malaysia, Singapore, Mexico, and the Philippines, reporting revenues for the fiscal year 2024 of approximately 40 billion baht (1.09 billion euros). Ikano Retail is one of 12 global franchisees of IKEA and currently operates 14 omnichannel stores and 5 stores within shopping centers, reporting a slight growth in performance compared to last year, with total revenue increasing by 1.3% year-on-year.

In Thailand, Ikano Retail owns and operates through an omnichannel approach, engaging with customers through various channels, managing 4 IKEA stores, including IKEA Bangna, IKEA Bang Yai, IKEA Phuket, and IKEA Sukhumvit, which opened on December 1, 2023. The company has succeeded in the Thai market with sales growth of 3.9% compared to the previous year, closing the fiscal year 2024 on August 31 with total revenue exceeding10 billion baht (approximately 286 million euros).

“Businesses worldwide are facing a difficult year, and IKEA is no exception,” said Mr. Christian Rojkier, CEO of Ikano Retail, acknowledging the impact of inflation and rising living costs on consumer lifestyles. “But coming together to turn challenges into new opportunities is at the core of Ikano's and IKEA's corporate culture,” Mr. Rojkier added.

Despite varying performances across markets, the company remains committed to lowering prices on essential home decor items and best-selling products, including food and various services. “We are ready to support consumers in saving in ways that we can because we understand how difficult situations like this can be for households with limited purchasing power,” Mr. Rojkier stated.

During times of high inflation and living costs, IKEA Thailand has chosen to stand by many people by investing in price reductions to help Thai consumers facing financial difficulties save on essential expenses. The company has announced further price reductions on over 2,400 items this year, with more than 85% being essential or best-selling products in the country, ranging from small storage boxes to kitchen furniture. Additionally, IKEA Thailand has also reduced delivery service fees to help customers make the most of their hard-earned savings.

Storage solutions continue to meet the needs of customers looking for ways to manage living space. Products from the MALM/PAX/BILLY/BILLY collections are the top three bestsellers, calculated based on total sales across Ikano Retail's 14 IKEA stores in Thailand alone, with customers purchasing bookshelves BILLY/BILLY up to34,460 units due to the high demand for organizing spaces at home and in offices. Meanwhile, food products and services continue to attract consumers in every market, with IKEA welcoming over14.5 million visits to its restaurants, cafes, bistros, and Swedish food corners last year. Total food sales decreased by3%, partly affected by global food supply issues, but the business will continue to meet the needs of customers looking for delicious food options at accessible prices.

In addition to IKEA stores, Ikano Retail is also developing land and investing in residential, office, and mixed-use projects through Ikano Center, which operates within 5 shopping malls in Malaysia and Thailand. These locations create unique experiences and serve as community gathering spots.

In the past fiscal year, Mega Bangna remained a popular countdown venue in Bangkok's eastern zone, hosting the Mega Countdown 2024 event, which attracted over 371,000 attendees to enjoy live performances and a spectacular fireworks display.

“Thanks to the Ikano Retail team for helping us through this year, enabling our organization to operate more efficiently and flexibly, while enhancing our omnichannel business model centered around stores to focus more on customer needs than ever before,” Mr. Rojkier concluded.

Interesting Facts

September 1, 2023 – August 31, 2024

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Approximately6.9 billion baht

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Total e-commerce sales in Ikano Retail's market increased 6% from the previous fiscal year.

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49.3 million

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Number of meatballs (beef, chicken, and plant-based) sold in 5 countries, with 27.3 million pieces sold in Thailand.

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5.54 million

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Number of plates and bowls from the OFTAST series sold, with 737,726 sold in Thailand.

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4.93 million

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Number of IKEA Family members across all Ikano markets increased 1.65% from the previous year.

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1.36 million

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Number of IKEA Family members in Thailand accounted for 59% of total sales in the country.

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550,000

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CRM members in all 5 Ikano shopping centers increased 22%.

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4,942

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Total number of employees at Ikano Retail, including 1,066 in Thailand.

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Total revenue from IKEA stores of Ikano Retail is part of the overall revenue in the annual financial report, which will be announced on October 8 by Inter IKEA Group the global franchise owner of IKEA. The table below shows revenue from Ikano Retail's stores and centers.