Ikea reported a rise in full-year sales as consumer spending and global demand for its flat-pack furniture continue to pick up, notably in China, the company said. The Swedish company opened three new stores in China this year to attract the country’s growing middle class.
For the full fiscal year ended August 31, Ikea reported that sales rose 5.9% to $37 billion from $36 billion the year prior. Comparable store sales grew 3.6%.
“We continue to see positive signs in consumer spending and it’s a great joy to report growth in almost all our markets, not least in the challenging markets in Southern Europe,” chief executive Peter Agnefjäll said in a statement.
In Europe, the company said sales are still burdened by a challenging economic situation and deflationary pressures, but improving employment is expected to lift consumer spending.
“A year ago, it was very difficult for most retailers in southern Europe, as for Ikea, but we now generally see that things are stabilizing,” Agnefjäll continued.
Ikea’s biggest markets, according to the report, are Germany, the U.S. and France. The company plans to expand in emerging markets, including India, where it said it plans to open 25 stores.
Looking ahead, Ikea plans to double sales to around $65 billion by 2020 through combined growth in sales at existing stores, and expanding its reach both at brick and mortar, and online.
“We have a clean multichannel strategy,” Agnefjäll said. “We are becoming more accessible by continuing to improve our existing stores, by opening new stores and by expanding our e-commerce service and in-store pick and delivery service.”