Despite the slowing economy, the Swedish retailer still consider China a key growth market, executives at IKEA said on Thursday, October 12.
China was for several years the fifth biggest market by revenue for Swedish Ingka Group, which runs most IKEA stores globally. The country is now only the tenth biggest, accounting for 3.6% of global sales in the company’s 2023 financial year.
“Ingka Group remains committed to China,” CEO Jesper Brodin told Reuters.
“Even as some Western companies are seeking to reduce their exposure to China, we are committed to the country and the growth and development. There is no middle way. You either believe and invest or you don’t” Brodin said.
The company has 37 IKEA stores in China, out of 537 locations worldwide.
Ingka Group had 697 million visits to its IKEA stores in the 2023 financial year. An increase of 7.4% from the previous year. The surge was even higher in China due to stores reopening post-pandemic. Based on these statistics, Ingka sees potential for China to make it back into its top five markets.