In the fiscal year 2022, Ikea India’s loss grew to Rs 807 crore amid a pandemic shutdown
According to the report, net sales at Ikea India increased 7.36 percent to 607.7 crore in FY21. The firm also disclosed brief store closures because of the epidemic throughout the year.
According to the most recent information available accessible by business intelligence platform, Tofler, the Indian division of Swedish furniture and home furnishings retailer Ikea increased its net loss to 807.5 crore in the financial year ending March 2021 from 720.7 crore in the previous year.
According to the report, Ikea India Pvt. Ltd.’s net sales increased 7.36 percent to 607.7 crore in FY21. The firm also disclosed brief store closures because of the epidemic throughout the year.
Sales in FY21 grew significantly more slowly than the company’s 64.68 percent growth to 566 crore in the year ending March 2020.
Ikea India’s business was hit by the outbreak of covid-19 in early 2020 and the ensuing lockdowns and movement restrictions.
“During the FY 2020-21, the company’s expansion plan and operations were impacted due to the global pandemic of covid-19. However, the company, not only managed its operations in an effective way but also extended its support to the society by way of donation of food, rations, medical equipment etc. through its various partners for helping the needy people and for minimising the spread of pandemic. The company also ensured the safety of its co-workers while managing its operations,” Ikea hadsaid in its financial report for FY21.
Due to the lockdown measures put in place by the governments of Maharashtra, Telangana, and Karnataka to stop the spread of the pandemic in FY21 when the pandemic waves arose, the company had to close its Mumbai store and discontinue online operations for a while, it stated. The business operated outlets in Navi Mumbai and Hyderabad during the fiscal year that ended in March 2021, and it was working to open shops in additional cities. Earlier this month, the retailer built its first big box store in the capital city of Karnataka. Ikea also began e-commerce operations in Bengaluru during the year.
A business spokesman acknowledged the significance of India as a market for Ikea in response to a question.
“We are in India for the long term and are in the initial years of operations in the country where we continue to invest in our priority markets to offer customers an omni-channel experience. Ikea is focussed on reaching the many people in our key markets with products and solutions that are affordable, sustainable, follow the best quality standards and relevant to their life at home,” the spokesperson said.
In Hyderabad, India, Ikea launched its first location in 2018, and in Navi Mumbai, India, in December 2020. With deliveries in Mumbai, Pune, Hyderabad, and Bengaluru, it has been expanding its online presence in the meantime. Additionally, Ikea has made plans to expand its small format stores across the nation.