Portugal: Ikea sales in country up 5 pct to €462 mln in fiscal year ending August 31

Ikea sales in Portugal rose 5 percent to 462 million euros in the fiscal year ended in August, driven by ‘online’, the chief financial officer and executive vice president of Ikea Portugal told Lusa.

In the fiscal year that began in September 2020 and ended on August 31 this year, and despite the restrictions imposed due to the pandemic, “we had very positive results, we managed to close with 462 million euros in sales,” Ricardo Pereira said.

“This is 5% above the previous year, despite having had more restrictions, more complexity, more difficulty, we managed to sell above the previous year, we are quite positive with the result,” Ricardo Pereira stressed.

In the fiscal year just ended Ikea Portugal was affected by two ‘lockdowns, in which the measures “were more restrictive”, as the shops “had 13 weeks” closed, while in the previous period (2019/2020) they were closed for about 11 weeks, he pointed out.

“In addition, when the shops had been open we had lots of restrictions”, with the limitation on people moving to other municipalities and the weekend closing time of 1pm.

“That affected us immensely and when we had the shops closed we couldn’t do ‘click & collect’ for most of the time,” but “we still had very positive results,” he said.

‘Online’ sales were a major factor in the positive result, accounting for almost a quarter (23%) of sales last year, he added. 

“In three months of 12, so a quarter of the year we were closed, without a shop, it was the ‘online’ channel that supported us here a lot in sales and it is exactly one of the channels where we have invested a lot,” he stressed, noting that the whole experience of buying over the Internet “is much better” and that the application “has had constant upgrades”.

The ikea.pt website and the Ikea App registered 62.7 million visits, 36% more than the previous financial year.

Since the reopening of the shops, ‘online’ sales are between 16% and 18%.

Ikea Portugal currently has five shops – Alfragide, Braga, Loures, Loulé and Matosinhos – plus three planning studio outlets (Cascais, Seixal and Sintra).

“One of the major investments we are making for the fiscal year that just started in September is to open three more planning studios,” he said, without giving any figures. They are scheduled to open in Setúbal on 11 November, in Coimbra before Christmas, and in Leiria in the spring of next year. 

Regarding new shops, Ricardo Pereira said: “We have plans to have more shops in the future, we saw potential in Lisbon and Porto, but we don’t have concrete projects for now although we have more plans to extend these planning studios”.

The focus, “at the moment, is to try and see and capture where we have potential”, he said.

Currently, Ikea Portugal employs around 2,700 people. 

“We see with great optimism and confidence this fiscal year 2022, so we must continue to grow, the goal is always to strengthen the teams,” despite admitting that the evolution of the pandemic is an unknown.

He mentioned that Ikea Portugal had invested 2.3 million euros to reduce prices on 100 products and had expanded the service offer with more external partnerships and price reductions, in an investment of around one million euros.