Ikea operator Ikano Retail records mixed success in Asia, despite Covid

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By Inside Retail Asia

Singapore proved a standout market for Ikea franchisor Ikano Retail last year, as the Covid pandemic disrupted trading hours across all four of its markets.

Sales at the three Ikea Singapore stores – including the Jurong location opened in April – reached US$274 million in the year to August 31, an increase of 21.2 per cent year on year.

Across the causeway, the Malaysian business did not fare quite as well, with sales down 13.9 per cent year on year to $302 million.

In Thailand, Ikano Retail reported sales of $248 million, down 3.3 per cent.

The different performances largely reflected government trading restrictions: Stores were closed an average of 83 days in Malaysia, 51 days in Thailand but just two weeks at the Singapore Jurong outlet.

Ikano Retail also owns the Ikea franchise business in Mexico and is set to open the first store in the Philippines – set to be the largest Ikea in the world – construction of which has been delayed by Covid. The company is also planning a foray into Vietnam.

Groupwide, Ikano Retail achieved sales of $1.19 billion, up 3.3 per cent on year.

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