2023-10-12 16:09:00
At a time when inflation is still affecting most businesses in Europe, the initiative deserves to be highlighted. Since September 1, the Swedish chain of furniture stores Ikea has lowered its prices on 750 products “mainly in its most affordable range” in Belgium. “In times of high inflation that leaves many people struggling with the cost of living, the need for affordable home furnishing solutions is high,” says Jon Abrahamson Ring, managing director of Inter Ikea, the franchisor. from Ikea Belgium.
If the Swedish group can afford these price reductions, it is thanks to a global context which has improved compared to last year: certain raw material and transport costs have thus significantly decreased compared to their peak from a few months ago. “Thanks to this and our operational improvement, we are able to pass on 29 million euros directly to customers by lowering the price of part of our products,” explains Ikea Belgium. Some will also speak of a certain return to normal: in December 2021, the Swedes announced an increase in their prices, of 9% on average due to inflation.
2.2 million portions of meatballs sold in Belgium
For the rest, the brand is doing well in Belgium, since it achieved a record operational turnover of more than 1.2 billion euros during its 2023 financial year (which ended on August 31). , a spectacular increase of 16% compared to the previous year. Belgian growth therefore clearly surpasses that of the group at the global level (+5.7% to 41.7 billion euros but with falling sales volumes). This Belgian growth is mainly due to the performance achieved in sales of kitchens (28,000 sold in one year, +12%), food products (+29%) and, above all, in e-commerce. , with a near doubling of “Click&Collect” sales.
“We have also managed to combine this strong growth with a 28% reduction in our carbon footprint,” underlines the CEO of Ikea Belgium, André Schmidtgall. Nearly a third of “last mile” deliveries were made with electric vehicles, with the target of 100% set for the end of 2025.
The brand’s eight Belgian stores (Anderlecht, Arlon, Ghent, Liège, Wilrijk, Zaventem, Hasselt and Mons) welcomed 12.8 million visitors during the previous financial year, one million more than a year ago. previously, it is true that it was still partially affected by the restrictive measures due to Covid. The vast majority of Belgian customers (84%) purchased food from a restaurant or bakery during their in-store visit this year. Restaurants sold 2.2 million servings of dumplings, 2.2 million hot dogs and 160,000 servings of mussels.
The Swedish brand has been present in Belgium since 1984 and employs nearly 4,500 people. Its objective is to make the kitchen and storage solutions segment its growth engines. Last year, Ikea estimated that it could double the number of kitchens sold in Belgium in the next three years. Note, finally, that the Swedish brand now uses autonomous drones for inventory in five Belgian stores and will invest 30 million euros in its “omnichannel” transformation in Belgium.
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