Monday, February 03, 2014

Ikea Still Believe Store Growth Better then E-Commerce!

Peter Agnefjäll, new ceo of The IKEA Group (Leyden, Netherlands), said the company’s ongoing growth will still depend on its expanding its retail network around the globe.
Agnefjäll joined IKEA in September 2013, one day after the company reported significant gains in its just-completed fiscal year. Net profits jumped 3.1 percent and it had 1.3 billion visits to its web site and nearly 10 million downloads of its catalog app.
At the same time, store visits declined by 1 percent despite the addition of five new stores, including two in China. The company's store count has almost doubled over the past decade, It now has 349 stores in 43 countries.
Nonetheless, Agnefjäll said, "I think that in 2020 the absolute majority of sales will still be in our stores." The ceo, who was a store manager shortly before taking the chief executive job, said the company will add more than 10 stores in fiscal 2014, but it is unclear how many new markets – if any – will get the option to buy online.
"We see that Internet and e-commerce is growing, but at the same time, when buying a new bed a lot of people want to try it first, and if you buy a sofa you may want to touch the fabric."
The Wall Street Journal reported that IKEA plans to spend $1.72 billion to open 25 stores across India. The next step is to find the right location for its first Indian store. It has land in the Indian states of Andhra Pradesh, Maharashtra, Haryana and Karnataka.


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