The company said in a statement Tuesday that online sales increased 45% in the 12 months to August, driven by 4 billion visits to its website. Outdoor furniture was the retailer’s fastest growing category, with office furniture sales also performing very well, a spokesperson told CNN Business.
Life at home has become “more important than ever for people … which has led to the repurposing of the home in many ways,” the Ingka Group, which operates 374 Ikea stores, said in a statement.
U.S. home improvement sales increased more than a quarter in the three months to August from a year earlier, according to market research firm NPD Group.
Families “have transformed kitchens into schools, bedrooms into workplaces and courtyards into amusement parks,” Ikea added, describing 2020 as “a homecoming year”.
Despite the pandemic and the spike in online sales, Ikea opened 33 new stores during the period, including Moscow, Seoul, Shanghai and Macau, and plans to expand into new markets such as Mexico and the Philippines.
The company said it will continue to take a “total market approach”, offering smaller showrooms in city centers, traditional suburban Ikea stores and online distribution centers.
Ingka Group said it continues to invest in real estate, such as the Kings Mall in London and the famous Rue de Rivoli in Paris. The franchisee’s online sales increased 60%, accounting for nearly a fifth of total sales, up from 11% in 2019.
– Nathaniel Meyersohn contributed to the reports.