Business

Ikea’s Singapore revenue falls to $341m, in line with expectations

Swedish home retailer Ikea generated a turnover of $341 million in Singapore for fiscal 2019 ended Aug 31, down 0.3 per cent or $1 million from a year ago.

"The overall healthy and largely flat turnover was in line with our expectations," Ikea South-east Asia head of corporate communication Corinna Schuler said yesterday.

"In this economic climate, we are proud that our Singapore stores are keeping the loyal customers they have and raising brand awareness."

According to the Department of Statistics' July figures, the country's retail industry saw sales falling 8 per cent year on year for the category of home furnishings and household equipment, Ms Schuler pointed out.

"These are some of the toughest times Singapore retailers have seen," she said.

"In the city state, we are challenged by declining consumer confidence and the lowest growth in annual GDP (gross domestic product) since the global financial crisis."

For the wider South-east Asia region, total revenue climbed by 20 per cent to reach $1.21 billion for financial year 2019 from $1 billion a year ago, according to the regional financial results released on Wednesday by Ikea South-east Asia.

Total revenue comprises retail sales as well as rental income generated from Ikea- anchored malls in the region.

Ikea South-east Asia is the franchisee that owns and operates stores and e-commerce in Singapore, Malaysia and Thailand.

The Malaysian business raked in $495 million in full-year revenue, while Thailand brought in $374 million.

In Singapore, Ikea South-east Asia has two full-format stores, located in Tampines and Alexandra.

"We are determined to maintain the trust of our customers in Singapore in spite of the tough economic indicators," Ms Schuler said.

Ikea South-east Asia delivered 353,000 orders to homes in the three markets for FY2019, up 38 per cent from a year ago. Business sales increased by 42 per cent year on year for the region. - THE STRAITS TIMES

BUSINESS & FINANCE