According to the CEO of Ingka Group, which owns the majority of IKEA stores, demand for the furniture retailing giant’s products in Europe will continue to rise during the current fiscal year, and the growth in demand will be driven by customers in the home furnishings segment that has remained steady even during the Covid lockdowns.
“We are right now optimistic that this would be a good year for us … we predict growth for this year,” Jesper Brodin said on the sidelines of the World Economic Forum’s meeting in Davos.
The growth in consumer Interest in the life-at-home segment, which witnessed an increase during the pandemic since people were forced to spend more time at home during lockdowns as well as work from home, has persisted, according to Brodin at the Reuters Global Markets Forum.
“Interest continues to be high. We see that in the numbers of visitations in our web, in our stores and also in our sales number,” Brodin said.
“It seems to me that there is a longer effect of the pandemic,” he said. “We see of course the continuous trend that people are investing in their home office.”
Ingka Group, the main franchisee to brand owner Inter IKEA in charge of supply, raised prices last year to offset higher input costs, counter soaring inflation and supply chain disruptions, and compensate for the company’s exit from Russia.
“While prices were increased last year, IKEA has started investing in decreasing prices of certain products this fiscal year,” Brodin said.
Brodin stated that the company faced numerous risks due to geopolitical tensions, technological disruptions, and climate change.
He stated that the company was investing in renewable energy and electric vehicles, as well as reviewing its raw materials. “We want to make ourselves climate resistant. We want our company to be long-lasting ” he stated.
(Adapted from Nasdaq.com)