The Swedish furniture manufacturer Ikea recorded a slight decline in sales on the German market.

In the fiscal year that ended at the end of August, the company achieved sales of 5.3 billion euros, 3.2 percent less than in the previous year, as Ikea announced at a press conference on Thursday.

Last year the company achieved record sales.

The reason for the decline was also the corona measures, the 54 furniture stores had to close for around four months.

As a result, stationary revenues fell by a quarter.

The "turbulence on the international production markets and transport routes" also presented the company with major challenges this year.

Stefanie Diemand

Editor in business.

  • Follow I follow

Another fact could bother Ikea even more: In addition to sales, the furniture retailer also lost important market shares in Germany. The tough competitive situation also plays a major role, says Dennis Balslev. Although Ikea remains the market leader in Germany, online retailers such as Amazon and Otto or mattress shops could also have benefited from the furniture business this year. The Ikea boss, however, is combative: The furniture store will regain its market share, and Ikea is planning to double this in the next six years.

Ikea lays the foundation for this with its digital business: The online business has continued to grow strongly this year, Ikea was able to more than double its sales here (1.747 billion euros). The online share of retail sales rose to 34.3 percent, compared to 16.2 percent in the previous year. Ikea also continued to invest in its stationary business: the company built a furniture store in Karlsruhe, and three so-called planning studios opened in the Berlin area, which are smaller than regular Ikea stores. In the past financial year, the company invested a total of 185 million euros.

In addition, Ikea boss Balslev warned of further business closings.

However, Ikea also has a social responsibility in times of pandemics.

"We would be prepared for a 2-G regulation," he says.

This is much better for the company than another store closure.

The company announced price increases for the next year, but it was not said how high they would be.

The delivery bottlenecks and higher raw material costs for wood, metal and foam would have hit the company harder than expected.

However, Ikea wants to remain affordable for its customers.

Overall, Ikea employed more than 19,700 people in the past financial year.

Despite shop closings, they continued to receive their full salary, Ikea continued to forego short-time work this year.