Ingka Group, the parent company of Swedish furniture retailer IKEA, said it plans to reopen IKEA’s European stores in May.
According to data provided by Reuters, Ingka Group’s sales fell by 60% due to the epidemic. Since March, most of Ingka Group’s stores in Europe and North America have been closed, while almost all stores in Asia have resumed business.
Ingka CEO Jesper Brodin estimated that each store would be closed for up to eight weeks, saying: “We need to hold on during this time so that we can survive. Our sales Sales have dropped by about 60%. However, online sales have more than doubled compared with the same period, easing the impact of the decline in the group’s total sales. Online sales currently account for half of the group’s total sales. Online sales in some markets Sales are nearly ten times what they were before the outbreak. The most prominent is Denmark, where sales have now returned to pre-store closure levels.”
Brodin predicts that next In September, the start of the first fiscal year, Ingka Group’s sales will recover to 90% of the same period last year, but the next fiscal year is expected to be more difficult.
Brodin said that lockdowns and other epidemic measures have caused many people to stay at home, but have promoted office furniture, laundry baskets, Whole sale of kitchen and cooking equipment such as pots, pans and jars. Sales of kitchen products are growing in Sweden’s domestic market.
Ingka Group plans to increase its inventory of baby products, anticipating a surge in demand for baby products within seven to eight months. Brodin said: “The epidemic crisis will bring about a baby boom.”
At the same time, demand for IKEA’s low-end products is growing. The epidemic has had an impact on the global economy, and this trend is expected to continue for some time. Brodin said: “Like after the 2008 financial crisis, people have less income.” The group will lower the prices of several products in the next year and expand the range of price reduction products.
It is reported that IKEA reopened all stores in the Chinese market in March except the Wuhan store. Sales have returned to the same period last year. The Wuhan store will also reopen within a few weeks. Open for business. </p
