Ikano Philippines Inc., the operator of the world’s largest IKEA store in Pasay City, announced a 2-percent decline in turnover in its financial year ending Aug. 31, 2024.
It said that despite the slight decline, the retailer remains committed to providing affordable home furnishing solutions to customers.
“We recognize the challenges that inflation and rising living costs have posed for consumers worldwide. Our focus remains on offering value and convenience to our customers, especially during these difficult times,” said Ikano Retail chief executive Christian Roejkjaer.
IKEA Philippines implemented price reductions on over 2,000 products, including essential items like sleep solutions and cookware to alleviate the financial burden on consumers.
The retailer also streamlined its delivery and collection services to help customers save money. Despite the overall decline in sales, IKEA storage solutions continued to be popular among customers seeking to declutter their homes.
While food sales were down by 3 percent, due to global supply chain disruptions, IKEA Food remained a popular destination for customers seeking affordable and delicious dining options.
Ikano Retail’s overall revenues across its five territories increased 1.3 percent to 1.09 billion euros in 2024 from 1.07 billion euros a year earlier despite the challenges faced in the Philippines.
The retailer said the growth was driven by strong performance in Malaysia, Thailand, Singapore and Mexico within the Ikano Retail network.
With 14 omnichannel IKEA stores and five IKEA-anchored shopping centers, Ikano Retail remains a significant player in the global IKEA franchise network.
