IKEA Norge’s profit skyrocketed by 50 per cent

IKEA ended last year with a turnover of NOK 8,988 million. This is a growth of 5.9 per cent from the previous year, and a new record for the furniture giant in Norway. Last year, online shopping accounted for 23.5 per cent of sales revenue in the financial year 2022/23.

According to the board’s report, price growth and rising costs of consumer goods have led to an overall decline in the market for furniture and home furnishings, and it is thus concluded that IKEA has gained market share.

Due to increasing purchase prices, IKEA made adjustments to the selling prices in 2022/23. Operating profit increased by as much as 51 per cent to NOK 500 million in the financial year. It is IKEA Norway’s highest result in over ten years.

A dividend of NOK 300 million has been set aside for the owners, the Ingka group. Ingka operates 397 Ikea stores in 31 countries, and is the largest franchisee of the Ikea concept.

Opens on Karl Johans gate

IKEA opened its first Norwegian warehouse in 1963, and today has warehouses in Oslo, Asker, Bergen, Stavanger, Trondheim, Lillesand and in Ringsaker. In addition, the company has seven separate planning and ordering points in seven Norwegian cities. Six of these were opened in the financial year that ended on 31 August last year.

In addition, IKEA opened a new parcel warehouse in Vestby last year, which will contribute to faster home delivery to customers. Previously, goods for Norwegian customers were sent from Sweden. The furniture giant is also in the process of building a new 43,000 square meter central warehouse in Vestby. There will be a need for 200 new jobs.

The IKEA board expects that lower purchasing power will reduce the overall turnover in Norwegian retail in the financial year 2023/24. Despite this, IKEA Norge expects growth and positive development in market shares going forward.

IKEA recently opened a new planning and ordering point at Majorstua in Oslo. Soon, a store will also open on Karl Johans gate in central Oslo.