Ikea India Revenue Up 73% In FY22, But Loss Widens

The company that operates large and small format stores in India reported a 73% jump in total revenues in FY22 to ₹1,126 crore compared to a year ago period as it opened more stores in the country.

Total expenses of the company, known for its DIY furniture range, grew 39% to ₹2,027 crore in the fiscal, up from ₹1,457 crore in the year ago period.

Ikea operates three big-format furniture and home stores in Hyderabad, Navi Mumbai and Bengaluru, and offers online services in Mumbai, Pune, Hyderabad, Gujarat, and Bengaluru. It also opened two small-format city centres in Mumbai opened in December 2021, and July 2022, respectively.

“India is an important growth market for IKEA. We are in India for the long term and still in the initial years of operations where we continue to invest in omni-channel expansion in our priority markets. We have almost doubled sales in India over the last year and we will continue to focus on reaching the many people in with our accessible, affordable, sustainable products and solutions that are relevant to life at home in India," a company spokesperson said.

In data provided by Tofler, Ikea India said that during FY 2021-22, the company continued to welcome customers to its Hyderabad and the Navi Mumbai store by providing them amazing home furnishing experience and solutions; it also continued with its e-commerce operations in Hyderabad, Mumbai, Pune, Bangalore and Gujrat. Ikea continued to focus on opportunities to grow the business in existing channels and through opening new channels and units, it said.

To be sure, the early part of FY22 was also marked by a severe covid-19 wave.

Despite the impact of pandemic of covid-19, the company, during the FY 2021-22, opened its doors to its customers with the following store openings—in Worli Mumbai, R-City Mall in Mumbai and a large format store in Bengaluru.

More recently, the furniture retailer’s parent company firmed up plans to open shopping centers in the country via Ingka Centres. In August, Ingka Group, which runs Ikea Retail and Ingka Centres said it will invest €900 million (about ₹7,266 crore) to build two mega shopping centres in the Delhi-NCR. One such centre in Gurgaon will house an Ikea store, other retail outlets for global and local brands, edutainment activities, a food park and even commercial office space.