New Delhi Swedish furniture and home goods retailer Ikea’s Indian unit widens its net loss 807.5 crore in the financial year ending March 2021 720.7 crore in the previous year, as per the latest available data accessed by business intelligence platform, Toffler.
Net sales in Ikea India Pvt. Ltd rose 7.36% 607.7 crore in FY2011, the data showed. During the year, the retailer also reported temporary store closures due to the pandemic.
Sales in FY2011 grew at a much slower pace as compared to the growth of 64.68% that the company recorded in the year ended March 2020 566 crores.
The spread of COVID-19 in early 2020 and the subsequent lockdown as well as restrictions on mobility impacted Ikea India’s business.
“During the financial year 2020-21, the company’s expansion plans and operations were affected due to the global pandemic of COVID-19. However, the company not only managed its operations in an effective manner but also contributed to the society through donation of food, ration, medical equipment etc. through its various partners to help the needy people and reduce its spread. gave his support. Epidemic. The company also ensures the safety of its co-workers while managing its operations,” Ikea said in its financial report for FY2011.
As the pandemic raged in FY2011, the company had to close its Mumbai store and online operations for a certain period due to the lockdown measures implemented by governments in Maharashtra, Telangana and Karnataka to contain the spread of the pandemic. Had to stop too. Said it. During the year ended March 2021, the company was operating one store each in Hyderabad and Navi Mumbai and was in the process of setting up stores in other cities. Ikea also launched e-commerce operations in Bengaluru during the year; Earlier this month, the retailer opened its first big box store in the Karnataka capital.
Responding to a query, a company spokesperson said that India is an important market for Ikea.
“We have been in India for a long time and are in the early years of operations in the country where we continue to invest in our priority markets to provide customers with an omni-channel experience. Ikea offers such products and services in our key markets. It is focused on reaching out to the many people with solutions that are affordable, sustainable, adhere to the best quality standards and are relevant to their lives at home,” the spokesperson said.
Ikea opened its first store in India in Hyderabad in 2018 followed by a Navi Mumbai store in December 2020. Meanwhile, it is expanding its presence online with deliveries in Mumbai, Pune, Hyderabad and Bengaluru. Ikea has also announced plans to open more small format stores in the country.