- NETMEDIA International
E-commerce reaches 35% of Ikea France's turnover
This article was originally published by Dalila Bouaziz.
For the fiscal year 2020-21, the furniture and decoration group realized a turnover of 2.889 billion euros, up 4% despite 4.5 months of store closures. E-commerce has doubled in one year and represents 1.006 billion euros in sales, accounting for 35% of it.
Ikea France reported sales of €2.889 billion for the FY21 fiscal year -from September 1, 2020 to August 31, 2021- up 4% despite 4.5 months of store closures. Speeding up its omnichannel transformation developed over the past three years, the home furnishings and decor retailer has redefined the role of stores during the closures, implementing a "Click and Collect" service, home deliveries or via remote kitchen or bedroom planning appointments.
The turnover of the e-commerce has doubled in one year, and increased tenfold in 4 years.
It amounts to 1.006 billion euros (online sales and services, including remote planning services) and represents 35% of revenues (vs. 15.4% last year).
"The teams have performed a tremendous job during this challenging year. We believe in the French market, which is a country of experimentation and innovation for IKEA to get closer to our customers and to engage in sustainable and inclusive growth," states Walter Kadnar, President and Chief Sustainable Officer of IKEA France.
The products that are sustaining this growth are: the kitchen with 240,000 units sold (+13% vs. FY20), the bedroom and in particular mattresses with 950,000 mattresses sold (+18.4% vs. FY20) and the living room, with 370,000 sofas sold (+23% vs. FY20), i.e. 1,000 sofas per day.
A more mature omnichannel model
With 37.5 million visits over 7.5 months of operation, the stores show their strength and underline the great complementarity between physical and digital contact points.
IKEA has launched three new store concepts in the city center: IKEA Décoration Paris Rivoli, offering mainly accessories and decorative items, - a temporary Design Workshop in Paris Daumesnil before opening permanently in the area in spring 2022, - two "My IKEA Advice Point" in Toulouse and Perpignan, offering advice and planning in areas of around 100m².
These small contact points in the city center allow IKEA to set up in white areas or to get closer to its customers in city centers where the company owns stores on the outskirts.
The Nice Saint-Isidore store, with a sales surface of 24,000m², will open in spring 2022. Located near the city center and in the heart of an eco-neighborhood, it will feature the full range of products. "My IKEA Advice Point" will be extended to other cities in France
A store devoted to the second life of furniture in Paris
A new sales point will add to the online and in-store solutions available to encourage the extension of the life of furniture: spaces dedicated to the circular economy in stores, the Second Life of Furniture service, and since this year, the online reservation of used furniture available in stores.
The retailer aims to deliver to all its customers with zero-emission solutions in France by 2025, starting with inner Paris. The company is rolling out a specific fleet of electric vehicles designed to meet its needs in terms of delivery capacity and range. In addition to these vehicles, IKEA France will develop river logistics from the Gennevilliers depot (93) in 2022, then from Limay (78) which will be operational in 2026.
IKEA France is also investing 17.5 million euros over four years to furnish all its units with electric vehicle chargers. 2,200 charging stations will be set up, including 1,700 for customers, 300 for employees and 200 for deliveries from stores.
IKEA claims the leading position in home furnishings with a 15.9% market share.
The smartphone to simplify the customer journey
Digital, with virtual or enhanced reality solutions, will allow IKEA to optimize the surface of downtown stores and provide inspiration. Customers will be able to interact with products and environments via their smartphones or tablets and virtual reality projections, through an immersive experience.
IKEA France is also improving the accessibility of its online services. In response to increasing customer demand for Click and Go, IKEA France is driving the world to offer a new solution for this service. An automated space will be installed at IKEA Plaisir. Available from December 2021, it will enable the store to store more orders simultaneously, while offering customers a wider choice of creations every day.
IKEA France has 12,182 employees (IKEA Furniture France, IKEA Service Distribution France and IKEA Centres France), 35 stores, a design workshop, two advice points, 4 warehouses, a customer support center, an e-commerce website IKEA.fr and an app.