IKEA CEO says company is 'on track' to hit €50bn sales target in 2020

In an interview with Reuters, IKEA CEO Peter Agnefjall has revealed that the IKEA Group is expecting to post sales growth of 8-10% by the end of its financial year in August.

The anticipated increase places the retailer on track to reach its 2020 target of €50bn in sales. Mr Agnefjall said: “We are well on track to realise the plans we have", adding, “We are on that journey. That means we need to grow 8-10 percent annually to reach it and that is probably roughly where we'll land this year”.

Mr Agnefjall told Reuters that he expected a 40% rise in online sales this year; around the same level of growth experienced during in the three years prior. IKEA’s online sales were around €1bn in 2015.

The CEO advised that the European market was recovering and that, despite reports to the contrary, the Chinese market is still experiencing growth. He said "There has been talk for three years that China is slowing down. We don't see those signs."

He confirmed that investment in Russia was on hold but further progress had been made on securing sites in Bangalore, Mumbai and New Dehli, in India. The first IKEA store in India is set to open in Hyderabad, in 2017.

Earlier this week IKEA revealed that it will start work on an online store in Australia.

Source : Insight DIY

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