IKEA reported a drop in annual sales blaming store closures early in the coronavirus pandemic but said consumers have flocked to its stores since lockdowns lifted to buy desks, chairs and kitchens.
About 75% of the furniture retailer’s stores were closed for between seven to 10 weeks because of coronavirus lockdowns. That resulted in visits to IKEA stores falling nearly 16% for its fiscal year, and lower revenue from its restaurants, which typically make up about 5% of sales.
Overall, Ingka Group—the largest IKEA franchisee and operator—on Tuesday reported sales of €35.2 billion, equivalent to $41.5 billion, for the 12 months to Aug. 31, down from €36.7 billion a year earlier. It didn’t disclose profit figures.
Chief Executive Jesper Brodin said in an interview that consumption trends around the world had been similar through the pandemic. Early on, shoppers bought desks, office chairs and cooking equipment. Interest then moved toward