• 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
Baby dies after midwife denies woman's request for c-section
Uppsala University Hospital. Photo: Fredrik Persson/TT

The midwife insisted on six attempts at vaginal birth before an emergency caesarean section was carried out.

Don't let them bite! Bedbugs proliferate in Swedish hotels
Swedish bedbug fighter Jonny Ström does his thing in 2014. Library photo: Anders Wiklund/TT

The number of bedbugs in Swedish hotels has doubled in recent years, according to figures from pest control firm Anticimex.

Swedish state agencies 'outsource jobs to spies'
The Stockholm headquarters of the Swedish Security Service, Säpo. File photo: Tomas Oneborg/SvD/TT

Foreign countries are trying to infiltrate the Swedish state by winning government contracts, it has been claimed.

What's on in Sweden
The most stunning Swedish festival spots this week
The Norberg Festival at an old ore mine. Photo: Peo Bengtsson

How about a party on an island, in an old quarry or a former mining camp? That's all on offer in Sweden this week.

Swedish police backtrack on 'gunfight' claims
The scene of the shooting on June 22nd. Photo: Christine Olsson/TT

Police have retracted a claim that a suspected gunman had fired shots at a patrol unit before officers shot him dead.

Crayfish poachers send Swedes' blood boiling
Has anyone seen this crayfish? Photo: Hasse Holmberg/TT

Oh no, not just before crayfish season!

Police hunt suspected gunman, 22, in Malmö
Rosengård Centrum. Photo: Simon Paulin/SvD/TT

Malmö police are looking for a 22-year-old suspect in connection with a shooting at a shopping centre in Rosengård.

Really old stinky cheese found on royal Swedish shipwreck
A diamond ring, the stinky cheese and gold coins. Photo: Lars Einarsson/Kalmar County Museum

Swedish scientists have discovered what is believed to be 340-year-old cheese on board a 17th century shipwreck.

Man charged with groping girls at kids' football cup
The accused in court. Photo: Adam Ihse/TT

A 36-year-old sports manager whose team was sent home from Sweden after he was accused of groping three teenage girls at an international children's football tournament now faces trial.

Concern over barrage of fake Russian news in Sweden
The Russian propaganda site Sputnik News

Sweden is being subjected to constant disinformation campaigns by Russia and Isis, according to authorities.

Sponsored Article
What can newcomers learn about Sweden at Almedalen?
Politics
Why Sweden's high taxes are not as high as you think
National
What's haggis in a condom doing on Swedish children's TV?
National
Meet the northern Swede who is the world's best mosquito killer
Blog updates

26 July

A summer of change; a summer of beauty (The Diplomatic Dispatch) »

"You would have had to try hard to miss the political upheavals in the UK after…" READ »

 

22 July

After the horror, carry on regardless (Globally Local) »

"This time last week, we were just digesting the horror of the Nice killings, in which…" READ »

 
 
 
Sponsored Article
Gran Canaria: Where Swedes go to work (and play)
National
Sweden's Hollywood star Alicia Vikander puts her pen in the bottle
Sponsored Article
Why you should attend an international job fair
Gallery
People-watching: July 22nd-24th
The Local Voices
The Jewish Syrian who dreams of rebuilding his country
National
Watch this Swedish weather host leave his fly open... on live TV
Sponsored Article
Why Swiss hospitality graduates are in demand
The Local Voices
'I fled war in Syria. I never expected to be beaten in Sweden'
Sponsored Article
Five easy ways to travel more often
National
WATCH: Asylum seeker brutally beaten by Swedish bus driver
Technology
Why everyone is talking about Sweden's GTA pride parade
Sponsored Article
Why expats choose international health insurance
National
EU hits truck cartel with record price fixing fine
Sponsored Article
'Sweden's Lauryn Hill' touches the country's musical soul
Society
OPINION: Why Sweden is the most extreme country in the world
The Local Voices
'There is equality in accommodation in Sweden: Everyone is suffering'
Sponsored Article
Five things Americans should know about voting abroad
Gallery
Property of the week: Gräsö, Östhammar
Sponsored Article
Local guide: the best of Berlin
Gallery
People-watching: July 15th-17th
Sponsored Article
Why you need a EuroBonus American Express Card
National
How to make sure you're not caught out by Sweden's old bank notes
Business & Money
Why Sweden has been named the most innovative country in Europe
National
Terror attack: what should you do?
National
French expat on the moment he was assaulted by a Stockholm bouncer
Technology
Gunman? Nah, smartphone Swede
The Local Voices
'If the war in Syria ended today, would you go back?'
The Local Voices
‘I feel like I’m living in a grave!’
Gallery
IN PICTURES: Sweden's Princess Victoria celebrates 39th birthday
Gallery
People-watching: July 13th
National
Swedes discover surprise mountain
Politics
What Sweden's home secretary thinks of Britain's new PM
Gallery
Property of the week: Smedjebacken, Dalarna
The Local Voices
'Even xenophobic Swedes can be polite’
Politics
WATCH: A very Swedish take on Brexit...
The Local Voices
'The best time to be smuggled to Europe is August 20th, 2015'
The Local Voices
Swedes: Stop obsessing over your material life and start talking to strangers
3,351
jobs available