IKEA Shopping List During Covid: Work Desks and Kitchen Gear

IKEA reported a drop in annual sales blaming store closures early in the coronavirus pandemic but said consumers have flocked to its stores since lockdowns lifted to buy desks, chairs and kitchens.

About 75% of the furniture retailer’s stores were closed for between seven to 10 weeks because of coronavirus lockdowns. That resulted in visits to IKEA stores falling nearly 16% for its fiscal year, and lower revenue from its restaurants, which typically make up about 5% of sales.

Overall, Ingka Group—the largest IKEA franchisee and operator—on Tuesday reported sales of €35.2 billion, equivalent to $41.5 billion, for the 12 months to Aug. 31, down from €36.7 billion a year earlier. It didn’t disclose profit figures.

Chief Executive Jesper Brodin said in an interview that consumption trends around the world had been similar through the pandemic. Early on, shoppers bought desks, office chairs and cooking equipment. Interest then moved toward home organization items such as shelving and baskets. Demand for kitchens was also high, with people taking advantage of time at home to install them.

IKEA said online sales make up 18% of the company’s overall revenue. A company’s store in Shanghai in July.



Photo:

alex plavevski/EPA/Shutterstock

“Lately, we see a lot of interest in beautification,” said Mr. Brodin. “A lot of people are taking the opportunity to update their homes.”

The comments echo those from rival

Home Depot Inc.,

which in August posted its strongest quarterly sales growth in nearly 20 years, saying the home had never been more important to consumers than during the pandemic.

IKEA said online sales grew 60% and now make up 18% of the company’s overall revenue, up from 11% a year ago.

To meet surging online demand, IKEA repurposed its stores to act as fulfillment centers, rolled out click-and-collect at new locations and offered drive-through collection.

It also acquired Geomagical Labs, a startup whose imaging technology allows consumers to decorate and furnish 3-D representations of their homes. In China, IKEA began making its products available on

Alibaba Group Holding Ltd.

’s Tmall online marketplace—the first time they were sold on a third-party online platform.

Analysts and economists are paying close attention to monthly retail sales numbers as a way to gauge how the economy may be recovering from the impact of the coronavirus pandemic. Photo: Kathy Willens/Associated Press. (Originally Published June 16, 2020)

IKEA said it had benefited from efforts under way before the pandemic to make its products more accessible to people living far away from its stores or who may not have the means to travel to them. Those include opening smaller, city-center stores and investing in improving its online delivery and click-and-collect services. Mr. Brodin said such efforts “suddenly became a survival line” once Covid-19 hit.

However, IKEA ran into trouble in the U.S., where online customers complained of struggling to place, track and receive orders. The company also said it had been caught off guard by level of demand, resulting in some products being temporarily unavailable.

In response, IKEA

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IKEA Sees Strong Demand for Work Desks and Kitchen Gear

IKEA reported a drop in annual sales blaming store closures early in the coronavirus pandemic but said consumers have flocked to its stores since lockdowns lifted to buy desks, chairs and kitchens.

About 75% of the furniture retailer’s stores were closed for between seven to 10 weeks because of coronavirus lockdowns. That resulted in visits to IKEA stores falling nearly 16% for its fiscal year, and lower revenue from its restaurants, which typically make up about 5% of sales.

Overall, Ingka Group—the largest IKEA franchisee and operator—on Tuesday reported sales of €35.2 billion, equivalent to $41.5 billion, for the 12 months to Aug. 31, down from €36.7 billion a year earlier. It didn’t disclose profit figures.

Chief Executive Jesper Brodin said in an interview that consumption trends around the world had been similar through the pandemic. Early on, shoppers bought desks, office chairs and cooking equipment. Interest then moved toward home organization items such as shelving and baskets. Demand for kitchens was also high, with people taking advantage of time at home to install them.

IKEA said online sales make up 18% of the company’s overall revenue. A company’s store in Shanghai in July.



Photo:

alex plavevski/Shutterstock

“Lately, we see a lot of interest in beautification,” said Mr. Brodin. “A lot of people are taking the opportunity to update their homes.”

The comments echo those from rival

Home Depot Inc.,

which in August posted its strongest quarterly sales growth in nearly 20 years, saying the home had never been more important to consumers than during the pandemic.

IKEA said online sales grew 60% and now make up 18% of the company’s overall revenue, up from 11% a year ago.

To meet surging online demand, IKEA repurposed its stores to act as fulfillment centers, rolled out click-and-collect at new locations and offered drive-through collection.

It also acquired Geomagical Labs, a startup whose imaging technology allows consumers to decorate and furnish 3-D representations of their homes. In China, IKEA began making its products available on

Alibaba Group Holding Ltd.

’s Tmall online marketplace—the first time they were sold on a third-party online platform.

IKEA said it had benefited from efforts under way before the pandemic to make its products more accessible to people living far away from its stores or who may not have the means to travel to them. Those include opening smaller, city-center stores and investing in improving its online delivery and click-and-collect services. Mr. Brodin said such efforts “suddenly became a survival line” once Covid-19 hit.

However, IKEA ran into trouble in the U.S., where online customers complained of struggling to place, track and receive orders. The company also said it had been caught off guard by level of demand, resulting in some products being temporarily unavailable.

In response, IKEA said it was working to make more products and speed up the time it takes to get these to stores.

Mr. Brodin said he expects people’s focus on their homes to continue, with the company forecasting sales for both

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Wall Decor Market in Europe- Featuring Amazon.com Inc., Carrefour Group, Costco Wholesale Corp., and Inter IKEA Holding BV Among Others

The Wall Decor Market in Europe is poised to grow by USD 9.56 billion during 2020-2024 progressing at a CAGR of over 9% during the forecast period.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200916005813/en/

Technavio has announced its latest market research report titled Wall Decor Market in Europe 2020-2024 (Graphic: Business Wire)

The report on the wall decor market in Europe provides a holistic update, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis.

The report offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment. The market is driven by the growing housing market & consumer expenditure.

Technavio suggests three forecast scenarios (optimistic, probable, and pessimistic) considering the impact of COVID-19. Download Free Sample Report on COVID-19 Recovery Analysis

The wall decor market analysis in Europe includes the distribution channel segment, product segment, and geographic landscapes. This study identifies the influence of latest interior design trends as one of the prime reasons driving the market growth during the next few years.

This report presents a detailed picture of the market by the way of study, synthesis, and summation of data from multiple sources by an analysis of key parameters.

The wall decor market in Europe covers the following areas:

Wall Decor Market Size in Europe

Wall Decor Market Forecast in Europe

Wall Decor Market Analysis in Europe

Companies Mentioned

  • Amazon.com Inc.
  • Carrefour Group
  • Costco Wholesale Corp.
  • Inter IKEA Holding BV
  • Kingfisher Plc
  • Otto Group
  • Tesco Plc
  • Walmart Inc.
  • Wayfair Inc.
  • Williams-Sonoma Inc.

Key Topics Covered:

Executive Summary

Market Landscape

  • Market ecosystem
  • Value chain analysis

Market Sizing

  • Market definition
  • Market segment analysis
  • Market size 2019
  • Market outlook: Forecast for 2019 – 2024

Five Forces Analysis

  • Five Forces Summary
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • Threat of new entrants
  • Threat of substitutes
  • Threat of rivalry
  • Market condition

Market Segmentation by Product

  • Market segments
  • Comparison by Product placement
  • Wall art – Market size and forecast 2019-2024
  • Picture frames – Market size and forecast 2019-2024
  • Wall clocks – Market size and forecast 2019-2024
  • WPS – Market size and forecast 2019-2024
  • Others – Market size and forecast 2019-2024
  • Market opportunity by Product

Customer landscape

Geographic Landscape

  • Geographic segmentation
  • Geographic comparison
  • Germany – Market size and forecast 2019-2024
  • UK – Market size and forecast 2019-2024
  • France – Market size and forecast 2019-2024
  • Italy – Market size and forecast 2019-2024
  • Rest of Europe – Market size and forecast 2019-2024
  • Market opportunity by geography

Drivers, Challenges, and Trends

  • Market drivers
  • Volume driver – Demand led growth
  • Volume driver – Supply led growth
  • Volume driver – External factors
  • Volume driver – Demand shift in adjacent markets
  • Price driver – Inflation
  • Price driver – Shift from lower to higher-priced units
  • Market challenges
  • Market trends

Vendor Landscape

  • Overview
  • Vendor landscape
  • Landscape disruption

Vendor Analysis

  • Vendors covered
  • Market positioning of vendors
  • Amazon.com Inc.
  • Carrefour Group
  • Costco Wholesale Corp.
  • Inter IKEA Holding BV
  • Kingfisher Plc
  • Otto Group
  • Tesco Plc
  • Walmart Inc.
  • Wayfair
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