Ikea India widens loss to ₹807 crore, sales grow 7%
Staff writer
NEW DELHI: Swedish furniture and home furnishings retailer Ikea’s Indian unit widened its net loss to ₹807.5 crore in the fiscal year ended March 2021 from ₹720.7 crore in the previous year, according to the latest available data accessed by business intelligence platform, Tofler.
Net sales at Ikea India Pvt. Ltd grew 7.36% to ₹607.7 crore in FY21, the data showed. During the year, the retailer also reported temporary store closures due to the pandemic.
Sales in FY21 increased at a much slower pace than the 64.68% growth the company recorded in the year ended March 2020 to ₹566 crore.
The spread of Covid-19 in early 2020 and subsequent lockdowns as well as restrictions on mobility impacted Ikea India’s business. “During the FY21, the company’s expansion plan and operations were impacted due to the global panmising demic of Covid-19. However, the company, not only managed its operations in an effective way but also extended its support to the society by way of donation of food, rations, medical equipment etc. through its various partners for helping the needy people and for minithe spread of pandemic. The company also ensured the safety of its co-workers while managing its operations,” Ikea had said in its financial report for FY21.
In FY21 as the pandemic struck, the company had to close its Mumbai store and also halt online operations for a certain period due to the lockdown measures implemented by the governments in Maharashtra, Telangana and Karnataka in order to prevent the spread of the pandemic, it said. During the year ended March 2021, the company was running a store each in Hyderabad and Navi Mumbai and was in the process of setting up stores in other cities. Ikea also started e-commerce operations in Bengaluru during the year; earlier this month, the retailer opened its maiden big box store in the capital city of Karnataka.
In response to a query, a company spokesperson said India is an important market for Ikea.