Ikea to focus on developing markets
Furniture and home giant Ikea is keen to focus on developing markets such as Russia, China and Eastern Europe after the cut down in spending in some of its major markets. At the opening of its 35th store in the US, located in Brooklyn, NYC, Anders Dahlvig the company’s chief executive stated that the housing downturn in the US had led to the slowdown in its global sales and did not expect a recovery for at least two years. He added that growth in many European countries was slowing down and that “A lot of things are going in the wrong direction.”
Besides the US, countries like the UK and Germany have been badly affected and even strong markets such as Spain have been effected with the downturn. The company’s outlets in Spain and Portugal had a record turnover of GBP1.19 billion this year, an increase of 42% over last years figures. So far the company has 11 stores in Spain and will be opening additional stores in Jerez, Granada, La Coruna, Valladolid and Madrid, aiming for a total of 40 stores by 2020. In total Ikea has 279 stores in 36 countries and hopes to reach 300 by the year end.
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