Ikea announces impressive financial results in Finland

Ikea’s sales have grown 14% in Finland – twice the growth rate of the company’s global turnover.

Ikea’s cost efficiency and massive sales volumes have helped the company to succeed in Finland despite the quiet period in the furniture retail market due to the recession. Ikea’s turnover in Finland increased by 14% to EUR 212.5 million during its accounting year ending in August 2010, according to André Schmidtgall, Ikea’s country director in Finland. Sales for the whole Ikea concern globally increased by 7.7% to EUR 23 billion. Ikea has also invested at least EUR 80 million on its stores in the cities of Vantaa and Kuopio in Finland.

Schmidtgall has set his growth targets high in Finland. By the year 2014, Ikea is aiming for EUR 400 million turnover as it tries to overtake the current market leader Kesko Indoor Group. In 2009 the combined turnover of the ten largest furniture retail chains in Finland was EUR 749.3 million. A new Ikea store is planned to open in Kuopio in the summer of 2012. Schmidtgall does not want to comment whether Ikea has future plans for the cities of Vaasa, Rovaniemi or other locations in Finland.

Ikea will continue its policy of not listing the company on the stock exchange, according to Schmidtgall. He says that the concern cannot be sold due to its ownership structure and the stable ownership base gives the management the opportunity for long-term planning.

Source: Kauppalehti