Swedish company IKEA reports massive growth in Portugal with €65m investment planned

Image of the IKEA logo.

Image of the IKEA logo. Credit: ikea.com

IKEA Portugal has recorded a positive sales performance of €552 million in the fiscal year of 2022.

This is up 19.5 per cent on the previous year and a 15 per cent increase on the values ​​recorded in the 2019 fiscal year, which was the pre-pandemic year and therefore comparable with the fiscal year of 2022 it pointed out in a statement.

In a year without limitations on in-store sales, the share of online sales stood at 19 per cent, starting from around 4 per cent in the 2019 fiscal year.

According to IKEA, it demonstrates that the new habits gained by the Portuguese during the pandemic were maintained after the reopening of commerce.

Who owns IKEA?

With IKEA Portugal’s sales growing more than its owner the Ingka Group internationally – with an increase of 5.6 per cent to €39.5 billion – it opens up the possibility of greater investment in business development and people, making IKEA an increasingly omnichannel company and offering better conditions and benefits for its employees.

The logistical transformation of IKEA’s business, crucial to this growth, involves renovations and expansions of the stores in Alfragide and Loures.

This will not only involve the creation and improvement of areas to support logistical processes and e-commerce, but also through the opening of new points of physical contact, with the opening of new Planning Studios.

Where are IKEA stores located in Portugal?

There are currently six of these spaces located in Sintra, Cascais, Seixal, Leiria, Coimbra and Setúbal. IKEA’s goal is to expand to other areas of the country in the coming years.

It is IKEA’s belief that this performance was only possible thanks to all of its employees, who continue to show strong leadership, commitment, and entrepreneurship every day.

The company’s ambition is to continue investing in increased employment while creating better working conditions, namely with salary increases, a rise in contracted hours, and bonuses.

What investments did the company make between 2022 and 2023?

Investments in the area of ​​business transformation and people are estimated to have been more than €65 million between 2022 and 2023.

Ricardo Pereira, CFO of IKEA Portugal, said: ‘In a year full of challenges, IKEA sales exceeded expectations and this success was largely due to the increasingly important role of the home in the lives of the Portuguese’.

‘Our main objective continues to be to ensure that the IKEA offer continues to be accessible to our customers, especially now that we are witnessing a general increase in the cost of living’, he continued.

Pereira explained: ‘With a democratic design approach and a strong focus on accessibility and convenience (products and services), we want to continue working to reach the majority of people. This is the direction that our investment goes in, namely, in the logistical transformation of the business and in the opening of new points of contact’.

Which countries does IKEA have stores in?

As homes continue to be the most important places in the world, IKEA witnessed sales growth in most of its markets last year, along with improved product availability across the board. It focused on showcasing the future of homes, retail and design, with a clear focus on people and the planet.

At a global level, an ambitious investment plan of €3 billion in expansion was initiated. The first customers were welcomed in urban stores in London, Stockholm, Toronto and Mumbai, plus a long-awaited store in Nice, and 47 other locations worldwide.

The Ingka Group has also invested in a property on Oxford Street in London, where it will open another store in the city, to bring the IKEA experience closer to more Londoners.

With rising inflation and the rising cost of energy and raw materials, the company continues to make every effort to keep prices as low as possible.

How is the Ingka Group helping the environment?

A commitment to making IKEA climate-positive is maintained by the Ingka Group by working to reduce greenhouse gas emissions emitted by the company’s total value chain by 2030.

As part of a €6.5 billion initiative to help limit global temperature rise to 1.5°C, the company has accelerated its investments in wind and solar projects in Germany, Spain, Sweden and Poland.

To further expand its responsible forest management practices, it has acquired land in New Zealand and Florida, where new forests will be planted to ensure an increase in biodiversity.

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Written by

Chris King

Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com