As Target, Sony and other U.S. retailers are exiting Canada, and homegrown chains shutter or trim their forces, Ikea Canada is flourishing.
Ikea Canada’s new president Stefan Sjöstrand, says he’s looking to expand the store in 2015, though he doesn’t say whether or not he’ll be opening more stores in Canada.
Ikea Canada’s sales numbers went up more than five per cent, to $1.6 billion in 2014. However, Ikea’s worldwide profits have slowed. Profits for the fiscal year through August rose 0.4 per cent from the previous year, slower than last year’s three per cent, and the previous year’s eight per cent.
Sjöstrand, who started the job in September, told the Canadian Press, it’s about the long game at IKEA.
“What’s important for us is that when we enter new markets, we don’t go fast,” he said. “We just opened up a new store in South Korea, and that project had been going on for seven years before we opened up the first store.”
“We have a long term strategy.”
Ikea has 12 stores in Canada, and, according to Sjöstrand, they see 2.5 million visitors.
Sjöstrand notes that he’s also an avid Ikea customer; in fact, most of the furniture he owns is from Ikea.
“I own a lot of Ikea furniture. I have a summer house in Sweden, I think it is 90 per cent Ikea furniture there,” he says. “Here in Canada it’s 70 per cent Ikea furniture.”
Sjöstrand aims to double online business to 10 per cent of overall sales in 2015, and the retailer is launching an easier-to-navigate website to reach that goal.
— With files from the Canadian Press
