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IKEA reveals ambitious plans for the next decade Thursday, 7th March 2013
Image courtesy of IKEA
IKEA has revealed ambitious plans for the next decade, particularly in regards to expansion within the Asian market.
IKEA’s sales last year totalled €27.6 billion (the equivalent of $36 million), twice the amount it was 10 years ago. The company has indicated that they are highly optimistic that this success will continue, as they hope to double their sales figures again before the decade ends. To achieve this goal, IKEA intends to open new stores at a rate of 20-25 per year.
The firm has particularly big plans for expansion in China and India. IKEA currently has 11 stores in China but hopes to more than triple this number over the next few years. Meanwhile, there are already plans for over 20 stores in India, although the company has admitted that it may be several years before development begins.
IKEA has acknowledged the need to adapt its strategies when expanding abroad. In particular, the company has discussed the need for expanding their delivery and installation services in countries which are not as accustomed to DIY and flatpack furniture sales.
IKEA currently operates in 26 markets worldwide. The company’s services and products are adjusted to accommodate the differences between each area.
Ikea struck by horsemeat scandal after meatballs test positive Monday, 25th February 2013
Photo credit: Ikea
Ikea has been forced to halt sales of its famous Swedish meatballs across 13 European countries after tests carried out in the Czech Republic found the meatballs contained horsemeat.
The world’s biggest furniture retailer said it had carried out the tests in response to the scandal after the discovery of horse meat and DNA in beef products across Europe. Ikea has since stopped the sales of all meatballs from a batch implicated by the tests in the Czech Republic on Monday.
"We take this very seriously," said Ikea spokeswoman Ylva Magnusson at the company's headquarters in Sweden. "We have stopped selling that specific batch of meatballs in all markets where they may have been sold."
Along with the Czech Republic, Magnusson said the meatballs had also been on sale in Britain, Belgium, Italy, Spain, Greece, Cyprus, Portugal, Netherlands, Slovakia, Hungary, France and Ireland.
All of Ikea’s meatballs are produced in Sweden by its supplier Familjen Dafgard, who said it was investigating the situation and would continue to receive further tests results in the next few days.
Austerity chic: Ikea reports record profits thanks to value-driven designs Wednesday, 23rd January 2013
Photo credit: Ikea
Ikea posted record net profits for the year on Wednesday, as shoppers continued to flock to the low-cost furniture retailer.
Net profit rose 8 per cent to EUR 3.2 billion in the 12 months to last August, as Ikea remained relatively resilient to the economic downturns felt across the globe.
"Customers are getting more and more value conscious, which makes Ikea a better choice," the retailer said in an annual summary.
The world’s largest furniture retailer was not, however, totally immune to the tempestuous economic backdrop, as operating profit fell by 3 per cent. Ikea said it had stuck to a strategy of absorbing rising costs of raw materials and higher inventories instead of passing these on to customers.
Revenue rose 9.5 per cent to a record EUR 27 billion for the privately held company, while stores open a year or more accounted for a 4.6 per cent increase in local currencies.
Chief executive Mikael Ohlsson said he predicted group comparable sales of around 5 per cent in the next few years; "We have been on that level the past three to four years. In this economic climate it seems that the customers' value consciousness, in combination with our lowering prices, allows us to do about 5 per cent."
Ikea is set to open six new stores in existing markets for the current fiscal year, after unveiling plans in 2011 to boost expansion to 25 new stores a year by 2015.
Ikea to add 200 stores by 2020 Thursday, 25th October 2012
Photo credit: Ikea
The world’s largest furniture retailer expects it revenue to grow by as much as 85 per cent in the next eight years, as it looks to add 200 units worldwide by 2020.
According to a report by NASDAQ, Ikea expects revenue to increase to EUR 45 billion to EUR 50 billion by 2020, up from EUR 26.9 billion for its most recent year end in August.
The Swedish retailer already has nearly 300 stores in 25 countries across the globe, opening its first stores in Croatia and Lithuania in 2013.
Home sweet Hermès : fashion house to launch 40 home stores for 2012 Thursday, 19th April 2012
Photo credit: Hermès AW 2008 campaign
The luxury French fashion house this week announced it would open 40 home collection stand alone points for 2012, with a focus on the Chinese and Japanese markets.
Speaking at Milan’s Salone Internationale del Mobile, the world's largest furniture and design exhibition, Hermès’ head of Maison Division Hélène Dubrule confirmed in an interview with MFF the brand’s expansion plan, adding that the collection is aiming to reach a share of 4 per cent of the entire company within the next five years.
John Lewis’ furniture drive for families in need Thursday, 2nd February 2012
John Lewis has teamed up with the Furniture Re-use Network (FRN) to collect the approximately 10 million items of furniture thrown away in the UK every year and redistribute them to households in need.
The department store claims the 3 million items of discarded furniture thrown out yearly can be re-used by households who cannot afford to throw away or mend broken furniture. The John Lewis upholstery disposal drive is currently being trialled in Liverpool, where it will continue until 25 February.
If the trial is successful, it will later be rolled out across the rest of the UK.
John Lewis says: "We aim to partner with FRN members that operate in the regions where our branches are located, directly impacting the communities in which we work."
The FRN is a national co-ordinating body for 400 UK re-use organisations that collect a wide range of household items to pass onto people in need.
Laura Ashley like-for-likes improve Friday, 16th December 2011
Laura Ashley posted a rise in like-for-like sales as it develops plans to shut unprofitable shops.
The homeware and fashion retailer saw like-for-likes grow 1.4 per cent in the 19 weeks to 10 December, bringing its year to date improvement up to 2.5 per cent.
Total sales at Laura Ashley fell 1.7 per cent year-on-year, as a result of reshaping its store portfolio, which saw five unprofitable stores close this year following 14 closures in 2010.
Enhanced upholstery and a made-to-measure curtain range on an interactive platform was attributed to the retailer’s 9 per cent rise in ecommerce sales.
Ikea sales decline, but market share advances Friday, 2nd December 2011
The Swedish furniture retailer may have suffered a decline in sales for the UK and Ireland, but advances in its market share means it’s not all bad news.
Ikea’s turnover in the UK and Ireland fell 3 per cent to £1.15 billion in the year to 31 August, whilst like-for-likes fell by the amount as the retailer did not open or close any stores, Ikea chief Martin Hansson told press.
Despite the sales decline, the retailer managed to increase its UK share from 6.1 per cent to 6.3 per cent as rivals suffered more severe trading falls, research by Verdict and cited by Hansson showed.
Ikea may be “taking a hit from a results perspective” by lowering its prices by 5 per cent in the year, but the initiative has apparently helped to improve their hold on the market.
“The market share development is good news, and is coming from our existing units as we haven’t added any space,” he said. “We are the market leader and we are strengthening that position.”
Online sales grew 20 per cent in the year as the world’s largest furniture retailer revamped its back office operations. Hansson said Ikea would like to open more stores, and is currently awaiting a decision on a planned Reading store.
Dwell slips back into the black as sales grow Friday, 18th November 2011
Furniture chain Dwell is back in black as sales grew in the year to 28 January despite a punishing big-ticket market.
Underlying EBITDA was £1.1 million compared with a £1.2 million loss the year before. Turnover jumped from £24.9 million to £33.4 million.
Like-for-likes were up on a single digit basis.
Dwell managing director Aamir Ahmad said. “This year is good, we’re growing again in sales, and profitability is improving,” he added.
Pre-tax losses shrunk from £4.5 million to £456,000 in the year.
Ahmad added that “a lot of growth” had come from web sales and new store openings, and said a strong marketing stance had helped to drive sales. Dwell has also upped its product development to “give customers something new”.
The retailer trades from 18 UK stores and plans to open a further four to five next year.
Swarovski unveils Crystal Forest boutique in Convent Garden Thursday, 27th October 2011
Swarovski will this weekend unveil its new concept boutique store in Covent Garden, followed by several more across the UK in the coming months.
After a complete refit, Covent Garden’s new Crystal Forest store will stock lighting and furniture designed by the jeweller to promote its Swarovski Fashion Accessories and Crystal Living Collections.
The new store can be found on James Street, London.