PETALING JAYA: Ikano Retail, the Ikea franchisee that brings Swedish home furnishings to Malaysia, Singapore, Thailand, Mexico and the Philippines, posted €1.09 billion (RM5.18 billion) in turnover in its 2024 financial year.
With 14 omnichannel Ikea stores and five Ikea-anchored shopping centres in its portfolio, Ikano Retail is one of 12 Ikea franchisees around the world. The retailer posted a modest performance against last year, with total revenue rising 1.3% year-on-year.
In Malaysia, Ikano Retail owns and operates an omnichannel business with four Ikea Stores (Ikea Cheras, Ikea Damansara, Ikea Batu Kawan and Ikea Tebrau), e-commerce, interior design and renovation services, collection points and its B2B arm Ikea for Business, among other services. Also in its portfolio are four shopping centres (IPC, MyTOWN, Toppen and Klippa). It closed its financial year on Aug 31 with a total turnover of €311 million.
All financial figures are reported in euros, the official reporting currency of Ikano Retail across its stores and centres.
“Worldwide, retail had a tough year, and so did we,” said Ikano Retail CEO Christian Roejkjaer, acknowledging the impact inflation and the rising costs of living have had on consumers. “But coming together to turn a challenge into an advantage is the very essence of our Ikano and Ikea company culture.”
Despite mixed performances across its markets, the retailer is committed to lowering prices on essential and best-selling home furnishing items, food and services. “We’re passing on savings where we can because we know how tough it can be for households with thinner wallets,” said Roejkjaer.
At a time of high inflation and living costs, Ikea Malaysia is siding with the many people by investing in lower prices to help Malaysians feeling the pinch find savings where it matters. The furniture retailer has lowered prices again this year on over 2,000 articles, majority of which are essential or best-selling items from its Gladom tray table to Strandmon armchair. Ikea Malaysia has also designed tiered pricing to deliveries starting at RM49 (for parcels weighing between 25kg and 40kg) to meet the different budgets of customers looking to stretch their savings further.
In addition to its Ikea stores, Ikano Retail expands its portfolio by developing land and investing in office, residential and mixed-use projects with its Ikano Centres business. Its five shopping centres in Malaysia and Thailand serve as meeting places for the communities around it. In FY24, Ikano Centres successfully hosted various events across the five shopping centres. In Johor, Ikano Centres also celebrated the openings of Game On and Forum Tebrau at Toppen to serve the active lifestyle community by providing more spaces and activities that cater to health, fitness, and entertainment enthusiasts.
