IKEA Malaysia, owned by Ikano Retail, recorded a turnover of RM1.46 billion for its financial year ended August 2024 (FY2024), marking a 4.2% decline year-on-year (YoY). This drop highlights the broader challenges facing the retail sector globally, with rising living costs and inflation impacting consumer spending.
Ikano Retail’s Performance Across Key Markets
Despite the drop in IKEA Malaysia’s turnover, Ikano Retail posted a total group turnover of RM5.18 billion for FY2024, reflecting a modest 1.3% growth compared to the previous year. The company operates in five core markets, with mixed performance across regions:
- Singapore: RM1.8 billion (+0.6% YoY)
- Malaysia: RM1.46 billion (-4.2% YoY)
- Thailand: RM1.35 billion (+3.9% YoY)
- Philippines: RM664 million (-2% YoY)
- Mexico: RM499 million (+20.8% YoY)
Commitment to Lower Prices Despite Challenges
Ikano Retail’s CEO Christian Roejkjaer acknowledged the tough retail environment but emphasized the company’s dedication to adapting to the challenges. “Coming together to turn a challenge into an advantage is the very essence of our Ikano and IKEA company culture,” Roejkjaer said.
In response to the pressures faced by households due to inflation and rising costs of living, IKEA Malaysia has focused on lowering prices on over 2,000 home furnishing items, food, and services to help alleviate financial burdens. They have also introduced tiered delivery pricing to cater to varying customer budgets.
Future Outlook
As the retail industry continues to recover, IKEA Malaysia’s initiatives to reduce prices and enhance affordability show their commitment to supporting consumers. This approach, despite the turnover decline, demonstrates a proactive effort to maintain customer loyalty while navigating economic challenges.
