Ikea Wants To Grow Its eCommerce Business
Amy | On 12, Nov 2015
Our favourite household name in the retail industry, jumped on the ecommerce bandwagon a bit late. And they really don’t mind admitting it either. Eventually the Swedish homeware store does have plans to grow its ecommerce business significantly in the next five years.
Ikea’s CEO Peter Agnefjäll told the CNBC:
“It will probably reach 5 billion euros in 5-6 years from now”
Furthermore, the privately owned Swedish company, is working on a whole new website and would further like to improve the logistics of getting their products to reaching their customers.
With a bit of luck, this will have its effect on the company’s ecommerce business.
“Today that part of our company is worth 1 billion euros, but it will probably be 5 billion euros in five or six years from now” – Predicts Agnefjäll.
Ikea has a worth of sales of 30 billion euros, with some 80 percent of it generated in Europe. Additionally, the company now aims for a 50 billion euros in revenue by 2020, which would correspond with an average growth rate of about 10% a year.
The achievement should be reached partly through growing its online business. Also, there is still a possibility of growth in this category, as Ikea operates in 42 countries globally, but presently has an online offering in just 13 of its markets. Agnefjäll agrees “We could have been faster, I could agree to that”. But Agnefjäll thinks that there is an upside to the late entry;
“We can now skip a step in the technology development, straight to mobile and tablet.”
Ikea has a strong presence in Europe, especially with Germany being the company’s biggest market. Still, the Swedish retailer perceives growth in Eastern Europe and China as well.
“We see that the underlying Chinese economy is growing strong” – Agnefjäll said.
You can check out the video on the official page of CNBC.