Ikea and furniture retailers struggle The furniture retail sector is facing significant challenges as it recovers from a post-pandemic slump, Di reports. Rising interest rates and a weak economy have compounded the difficulties, with the industry experiencing substantial losses. According to the trade magazine Market, “the crisis has erased ten years of development.” Nearly half of Sweden's largest 50 furniture retailers, specifically 22, reported losses in the past year. In 2023, the overall Swedish furniture market saw sales decline by over 15%, with only the building trade performing worse among retail sectors. Online retailers specialising in furniture and home decor experienced a drastic drop in sales, plummeting by 27%, the highest decline across e-commerce. Contributing factors include market saturation after a pandemic spike, where many households invested heavily in their homes during isolation, and the greater impact of economic downturns on non-essential goods like furniture. Even Ikea, a dominant player in the market, has not been immune to these issues. The company’s sales fell by nearly SEK 30 billion in one year, resulting in total sales of just over SEK 500 billion. Consequently, profit after taxes for Ingka Group, which operates 574 Ikea stores, nearly halved from over SEK 17.4 billion to SEK 9.3 billion. (ICE STOCCOLMA)

Fonte notizia: Mundus News Sweden, 18-12-2024