Swedish furniture giant Ikea has posted a 7.1 percent increase in its fiscal year worldwide sales and an even bigger jump in its e-commerce business. Total sales for the year ending August 31 rose to $38.4 billion. Individual store sales rose by 4.8 percent.
The company’s e-commerce business is also up 30 percent, thanks to an increase in the amount of click-and-collect locations opened by Ikea this past year. More of these locations were opened in fiscal 2016 than traditional stores, marking a shift in the company’s expansion strategy.
“This is part of the total conversion of IKEA from a traditional brick-and-mortar retailer to a multichannel retailer with the stores at the heart,” said Agnefjäll in an interview with the Wall Street Journal.
Ikea has followed its widely known store model for decades – opening large locations that act as showrooms, storage facilities and cafeterias.
But with the rise of e-commerce, the Swedish company has opened more click-and-collect locations, which grant customers the ability to collect online orders, while carrying a limited amount of products for individual purchase. These facilities average 20,000 sq. ft. and have company furnishing experts on-hand.
Nineteen of these locations were opened this past year – a large increase from the three it had in fiscal 2015. They’ve also opened 12 new traditional stores, down from 13.
There is no current plan to open a click-and-collect location in the U.S., but with their undisputed success, don't be surprised to hear an announcement soon.
In March 2015, Ikea opened the first of these locations in Spain. The company has expanded them to 11 countries since.
Ikea has more than 370 stores in 47 counties including 41 in the U.S.