• Sweden's news in English
 
app_header_v3

Ikea slims ambitious aim to double profit

AFP · 7 Jan 2014, 17:13

Published: 07 Jan 2014 13:27 GMT+01:00
Updated: 07 Jan 2014 17:13 GMT+01:00

Swedish furniture giant Ikea said on Tuesday it had dropped its target of doubling sales between the 2012-2013 fiscal year and 2020.

"Our goal has so far proved to be too aggressive," Göran Grosskopf, chairman of the Ingka Holding parent company that comprises all of the Ikea businesses, told Swedish financial daily Dagens Industri.

"Sales haven't developed as fast as we thought." 

Nevertheless, Ikea said it intended to pursue its growth goal.

"We continue to work according to our ambitious growth strategy," the company said in a statement. "By developing better products at lower prices, improving our existing stores, opening new stores and expanding our e-commerce offer, we plan to double sales by 2020, making Ikea accessible for more people."

Ikea posted sales of €27.9 billion ($36.5 billion) in the fiscal year to the end of August, only 3.1 percent more than a year earlier.In the 2011-2012 period, growth reached 9.8 percent, the highest for six years.

In the 2011-2012 period, growth reached 9.8 percent, the highest for six years.

Ikea said it would keep its 10 percent average annual growth target to reach 50 billion euros ($68 billion) in 2020 and explained that "there will be natural fluctuations from year to year and the growth will vary between markets".

The company blamed the slowdown on the global economic context.

"The main reason is that the world economy hasn't evolved as strongly as we expected," Grosskopf said. "Especially the development in southern Europe is very far from what we thought."

Last year, Ikea founder Ingvar Kamprad, known for his reluctance to talk to the media, criticized the company's project to open 25 stores per year as being too ambitious.

Story continues below…

Kamprad, aged 87 and suffering from health problems, is still listened to in Ikea, even though he has left his various functions within the company.Last June, he announced he intended to leave Switzerland to re-settle in Sweden by the end of 2013 or the beginning of 2014, still a pending plan in early January.

Grosskopf denied that Kamprad's move had been delayed due to the tax shock that could await him in his homeland according to some local media reports.

"Those are hypothetical speculations," he told Dagens Industri. "And his plan is still to move back home in 2014."

Founded in 1943, Ikea owns 303 stores in 26 countries and employs 139,000 people.

Your comments about this article

Today's headlines
Eurovision 2016
Eurovision set for US as gay channel announces live show
Eurovision flags flying in Stockholm this week. Photo: Anders Wiklund/TT

Now you can watch Eurovision in the US too.

'Isis' kids get taken into care in central Sweden
File picture of children in the middle east. Photo: AP /Manu Brabo

Three siblings authorities feared could be forced to go abroad to get married or fight alongside extremists have been taken into care in central Sweden.

Opinion
'Swedes, please give your sperm a purpose'
File picture of an embryo. Photo: Richard Drew/AP

Swedish men should stop jerking off in public places and start donating sperm to help single women have babies, argues Stockholm-based writer Matilda Karlsson.

Eurovision 2016
Palestine envoy angry at 'insulting' flag ban
The Palestinian flag (left) was included on the same banned list as that of Islamic State (right)

The Palestinian Ambassador to Sweden has waded into the row over a Eurovision ban on the Palestinian flag calling it "insulting" and "a big mistake".

US election
Miss Sweden hits back at Obama Trump gibe
Former Miss World Camilla Hansson and Donald Trump. Photo: Camillahansson.org and Michael Vadon/Flickr

US presidential hopeful Donald Trump is "a likeable person" with “good leadership skills", according to a Swedish beauty pageant winner.

Say 'hej hej hej' to some Swedish sunshine
Stockholmers enjoying a previous spring heatwave in 2014. Photo: Jessica Gow/TT

UPDATED: Temperatures are set to top 20C in parts of Sweden this week.

Swedish police Roma register 'not illegal'
A beggar in Stockholm. Photo: Leif Blom/TT

Roma in Sweden are deemed “a very exposed group”.

IN PICTURES
Fire rips through apartment block, 157 homes evacuated
The fire on Sunday night. Photo: Anna Hållams/TT

There's a risk the whole building could collapse, emergency services say.

'This would not have happened if I was white'
Yasri Khan. Photo: Marc Femenia/SCANPIX

Former Swedish Muslim politician explains reluctance to shake hands with women as "about my struggle to be allowed to be myself".

Teen boy in sex assault at Swedish asylum home
Silbodalshemmet, the large asylum centre in Årjäng, Värmland. Police have not yet named the centre. Photo: Google Maps

Five men have been arrested after a teenage boy was assaulted.

Sponsored Article
The Inner Circle: Stockholm's secret dating scene
Features
How to be a cool Swede during a hot summer
Sponsored Article
Eat, learn, live: unforgettable holidays in France
Gallery
People-watching: April 29th - May 1st
Analysis & Opinion
Why Sweden's fretting about Brexit
Blog updates

29 April

Editor’s blog, April 29th (The Local Sweden) »

"Hello readers, Relations between Sweden and Russia went from slightly strained to full-on James Bond this…" READ »

 

18 April

A day as a guard (The Diplomatic Dispatch) »

"Life as an Ambassador. Driven around in the Jaguar. Visits all planned so you go straight…" READ »

 
 
 
Sponsored Article
Kista: The best office space in Sweden?
National
INTERVIEW: Swedish police officer 'beat me up and used racial slurs'
Sponsored Article
Becoming an expat: where to start
Gallery
People-watching: April 27th
National
Öresund bridge border checks net record number of drink drivers
National
Swedes bid farewell to iconic Volvo
Sponsored Article
Why international researchers love to call Malmö home
Gallery
Property of the week: Enköping
Sponsored Article
‘Life in Stockholm’s suburbs is better than people realize’
Gallery
People-watching: April 22nd-24th
Politics
Could Brits in Europe stop Brexit?
Sponsored Article
'I may work at a Swedish company, but we’re global'
National
The first official picture of Sweden's new royal Prince Alexander
Sponsored Article
'A sustainable Sweden must embrace diversity'
National
Sweden's Sami reindeer still live in the shadow of Chernobyl
Finest
Gallery
People-watching: April 20th
Sponsored Article
What's the best way for expats to transfer money abroad?
National
Why was a Nazi flag hoisted in a Swedish town on Hitler's birthday?
Sponsored Article
Sigtunaskolan: 'The best of what Sweden has to offer'
National
How did Sweden's deputy PM get in trouble over New York comments?
Sponsored Article
'I may work at a Swedish company, but we’re global'
Finest
Gallery
People-watching: April 16th-17th
Sponsored Article
The Inner Circle: Stockholm's secret dating scene
Culture
Sweden finally axes historic dancing ban
Sponsored Article
'Swedes must realize only soft power can defeat radicalism'
International
Have you phoned Sweden yet?
Sponsored Article
How to launch your international career
Finest
Gallery
People-watching: April 13th
Sponsored Article
How Stockholm startups help new employees feel at home
National
Is booze going up in Sweden?
National
How Sweden's fake 'smombie' traffic sign is being used for real
Culture
Sweden's Tarzan drops trousers
Finest
Gallery
People-watching: April 9th-10th
3,275
jobs available
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
psdmedia.se