IKEA Korea reports a 3.4% increase in sales and new meatballs

IKEA Korea reported 683.6 billion won ($590 million) in sales in the fiscal year ending Aug. 31, up 3.4 percent on year.

Fredrik Johansson, IKEA Korea’s country retail manager, speaks at an online press conference held on Thursday. [IKEA KOREA]

IKEA Korea reported 683.6 billion won ($590 million) in sales in the fiscal year ending Aug. 31, up 3.4 percent on year.

In the previous fiscal year, sales grew 34 percent.

The Delft, Netherlands-based furniture company’s fiscal year runs from Sept. 1 to Aug. 31. It released a performance estimate for its Korean unit ahead of the end of the year.

Fredrik Johansson, IKEA Korea’s country retail manager, blamed the tendency of people to avoid crowded places during the pandemic for the sluggish growth. . “When the Covid-19 hit last year, factories had closed down based on local regulations, and there have been a huge container imbalance, especially from China and Europe,” Johansson said.

But the number of online and offline visitations in Korea jumped more than 20 percent on year.

The Korean unit of the furniture company reported 70 million visitations both online and offline, up 23 percent.

Online sales jumped 34 percent on year, as many people redecorated during the pandemic.

IKEA Korea said it won’t raise product prices next year, highlighting its goal to provide better quality products at lower prices.

“In fiscal year 2022, for the successful transformation of the omni-channel business, we will introduce an upgraded shopping experience and more affordable IKEA products and services while striving to inspire the many people to live a healthy and sustainable life,” Johansson added.

Omni-channel retail is a multi-channel approach to sales that aims to provide seamless shopping across multiple channels, like mobile devices and PCs.

IKEA Korea is transforming the omni-channel business with initiatives that include a new pickup point service by the end of the year.

The service will allow customers to pick up products outside of an IKEA store.

The company also vowed to become more sustainable.

It plans to sell more sustainable foods, like the plant-based meat balls, improve energy efficiency and invest in renewable energy.

BY JIN MIN-JI [jin.minji@joongang.co.kr]