IKEA Philippines, after experiencing a turnover of P8.7 billion in the fiscal year ending August 31, 2023, is setting its sights on a growth target of 4% to 5% for the current year. Gerard Jansen, the country retail manager, indicated that this growth, though modest, aligns with the market’s reality post-pandemic and the evolving consumer purchasing habits which have shifted significantly towards online shopping.
The company acknowledges the challenges posed by higher operational costs and inflation rates, which stood at 3.4% in February, marking an increase from January’s 2.8%. Despite these hurdles, IKEA aims to make its products more affordable for Filipino consumers, aligning with the company’s global mission to offer quality, well-designed, and sustainably produced items at the lowest possible prices.
IKEA Philippines operates the world’s largest IKEA store in Pasay City, which attracted around 17 million visits last financial year. The firm’s online business has also seen substantial growth, prompting the expansion of delivery and collection points throughout the country to accommodate increased demand.
The company plans to reduce prices on essential items like study desks, beds, and mattresses from April to enhance affordability. Although IKEA is cautious about physical expansion due to location and cost considerations, it remains open to opportunities that align with its strategic objectives. Meanwhile, online platform development and market pricing adjustments will be the primary focus to ensure broader access to IKEA’s offerings in the Philippines.
Potential future expansions are eyed in key cities such as Baguio, Cagayan de Oro, Cebu, Davao, and Iloilo, as IKEA continues to assess the market landscape and demand dynamics in these regions.
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