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.
The global COVID-19 pandemic had an
adverse effect on the company's expansion plan and operations during the FY
2020–21. But in addition to effectively managing its business, the corporation
also gave back to society by donating food, rations, medical supplies, and
other items through its many partners in order to aid the poor and slow the
spread of pandemics. In its financial report for FY21, Ikea stated that the
firm managed its operations while ensuring the safety of its employees.
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.
In order to provide customers with an omnichannel experience, we continue to invest in our key markets even if we are only starting out in India. The spokeswoman for Ikea added, "Ikea is focused on reaching the many people in our major markets with products and solutions that are affordable, sustainable, uphold the highest standards of quality, and are relevant to their lives at home.
