Ikea, the world's biggest furniture retailer, sold goods worth about Rs 2 crore every day on an average in the first year of operations in India, reported The Economic Times, adding that this stands as a record for any brand in the country — in the debut year — which has just one store.
Ikea generated revenue of Rs 407 crore in the first seven months of FY19 at its first store in Hyderabad. Initial investments had led to the company facing a loss of Rs 685 crore in FY19, the report said.
It had witnessed a loss of Rs 368 crore in FY18 owing to long-term corporate expenses, which included creating infrastructures like land, distribution centres, staff cost and training.
“This (loss) was due to the costs incurred in setting up the store and the distribution centres,” the company said in its filing with the Registrar of Companies, as mentioned by ET. “Millions of visitors have visited the Ikea store and the turnover of the store is also as per the expectations of the company.”
In August this year, the company entered online space with a launch of its online delivery system. Three months after going online in India, the home furnishing retailer brought its physical presence to Mumbai by launching two trucks in the city which offer Ikea products.