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He has a past as an assistant to founder Ingvar Kamprad, now he leads Inter Ikea for a month, which owns the brand and “rents” it to 12 franchisees who run 445 department stores.
Its first financial statements show that sales in department stores and other stores during the financial year from September 1, 2019 to August 31, were equivalent to 414 billion SEK. That is a reduction of 18 billion.
– I still have to be happy, considering that three out of four department stores were closed for a month due to the pandemic. On the positive side, we were able to offset something digitally, our online sales were up 45 percent for the year. It has also remained at a high level even after the department stores reopened, says Jon Abrahamsson Ring.
Ikea has three main goals: sustainability, availability and “affordable prices”. The group will be climate neutral by 2030, build new stores and increase e-commerce, but Abrahamsson now also wants to focus more on prices.
– In recent months, 60 percent of our sales have come from low-priced products. We are already relevant to many, but our prices remain an obstacle for a large number of people. Most of them are in India and China, but also in cities like Stockholm, Berlin and London; Today they go to others when it comes to home decor.
– Today we have an infrastructure with department stores and electronic commerce that makes us available to 2 billion people, we want to get as close as possible to 3 billion in five years. And then price is a big issue, says Jon Abrahamsson Ring
How should that price pressure go?
– We have the advantage that we only sell our own range. We decide for ourselves how we will be more efficient in everything from design and production to packaging, distribution and sales.
You want to sell even more stuff, how are you doing with the climate target?
– Again, it’s in our own hands. Better design, other raw materials, completely new materials, more recycling, more climate-friendly transportation, etc.
– A current example is our new “meatball”, where we have now launched a pea. It leads to 4 percent in carbon dioxide emissions compared to traditional, but it already sells very well. I mean that it is possible to reconcile our objectives.
Today, 445 department stores are operated on behalf of Ikea worldwide. During this year, the home decoration giant will open in new markets such as the Philippines, Mexico and Slovenia.
– We will continue to expand digitally, but we will not launch physical units. Last year, we opened more than 30 department stores and smaller stores. Next year it will be just over 50, says Jon Abrahamsson Ring.
