Business closures and supply challenges contributed to the decline.
IKEA's Southeast Asia stores sales fell 7.4% YoY to $711.13m (S$966m) in the financial year ending August 2020, the company announced.
Combined with income from its five IKEA-anchored shopping centres, turnover dropped by $66.25m (S$90m) to $809.78m (S$1.1b) over the same period.
The sales decline was blamed on business closures of up to two and a half months, supply challenges as well as limits on building capacity.
At the same time, its customers had placed more than 525,00 online orders and rung up $135 million in web sales, more than double the company’s e-commerce turnover from the previous year.
"With e-commerce operating in all three of its Southeast Asian markets for the first full year, the IKEA stores were largely able to continue selling during long closures with support and guidance from government authorities," the company said.
In the coming financial year, the company is planning to hire 200 people in Singapore as it prepares to open IKEA Jurong in 2021. In Manila, their world’s largest store is also scheduled to open in 2021. A team in Vietnam is working to open a store in the years ahead.
IKEA Southeast Asia & Mexico is operating stores in Singapore, Malaysia, and Thailand as well as the portfolio of Ikano Centres with some 1,500 tenants and 4 million square feet in leasable space.
The company is looking to expand in the coming year as it enters both Mexico and the Philippines, with online shops opening up months before the physical stores in both countries.
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