Business Review
Business Review
IKEA reported sales revenue was 3% ahead of the prior year. Operating profit was slightly ahead of the prior year, despite challenging external conditions and supply chain constraints impacting availability.
IKEA’s business performance, particularly in the first half, was hampered by the impact of COVID and global supply chain constraints. Throughout the second half, however, we began to see some improvements in traffic and sales
Group Sales*
Group Profit†
The world’s largest furniture retailer, IKEA, is operated by DFI Retail Group in Hong Kong, Macau, Taiwan and Indonesia. Renowned for design, functionality and quality at affordable prices, IKEA offers a comprehensive range of attractive home furnishing products, underpinned by a solid commitment to sustainability.
Strong e-commerce growth and double-digit penetration
IKEA reported sales revenue of US$839 million, 3% ahead of the prior year. Overall, LFL sales for the year were impacted by COVID-related restrictions in the first half and supply chain constraints, which impacted stock availability. Operating profit was US$46 million, slightly ahead of the prior year, primarily due to strong cost control.
Total Sales of Goods‡
US$ 839 m
Operating Profit
US$ 46 m
Store Network‡
23 stores
Home Furnishings
‡ Including 100% of associates and joint ventures.
In Indonesia, total trading area increasing by over 150% against 2019 levels
IKEA’s business performance, particularly in the first half, was hampered by the impact of COVID through reduced customer visits, operating capacity constraints and shortened trading hours. In addition, global supply chain constraints continued to impact stock availability. Throughout the second half, however, we began to see some improvements in traffic and sales, especially in Indonesia.
In Indonesia, the Group has invested significant capital over the past two to three years to grow its IKEA footprint, with total trading area increasing by over 150% against 2019 levels. While recent trading performance has been impacted by COVID as well as global supply chain constraints, the Group remains optimistic that performance will improve as external conditions normalise and IKEA is well-positioned to be a significant player in the Indonesian market over time.
