Ikea profits up as world demands flat pack furniture
Ikea profits up as world demands flat pack furniture

Ikea sales up as world demands flat pack furniture

SHOPPERS all over the globe have bought in to the flat pack furniture phenomenon helping Ikea post a 5.9 per cent spike in annual sales.

The Swedish retailer reported annual sales for the year to September of AUD$40.4 billion, and same store sales grew by 3.6 per cent, with strong growth in China and a recovery in southern Europe boosting the numbers.

A global recovery in consumer sentiment has meant Ikea is confident it will reach its sales target of $70bn by 2020.

Peter Agnefjall, Ikea chief executive, said: "A year ago, it was very difficult for most retailers in southern Europe… but we now generally see that things are stabilising."

It has 315 stores in 27 countries but around 70 per cent of its sales come from its home market of Europe with France, Germany and the US its largest markets.

The group, that sells everything from fitted kitchens to pot plants and childrens' toys to light bulbs, has seen a huge increase in demand in China.

China's emerging middle classes have become fans of the retailer and it now plans new stores in South Korea and India.

Despite the issues in Russia, following the Ukraine crisis, Ikea said it is committed to the region for the "long term".

It has begun expanding online recently and will report a full sales breakdown and profit figures with its annual report next January.