Furniture retailer IKEA India saw its net loss widen to Rs 720 crore in the financial year ended March 2020. The company had registered a loss of Rs 685.4 crore in the financial year ended March 2019, according to a Registrar of Companies filing shared by market intelligence firm Tofler.
However, IKEA India saw its net sales grow 64.68 per cent to Rs 566 crore in FY 2019-20 from Rs 343.7 crore in the previous fiscal. Its total revenue during the 2019-20 fiscal was at Rs 665.6 crore, up 63.18 per cent, as against Rs 407.9 crore in the previous financial year.
IKEA India, which has opened its second retail store this month in Mumbai, saw its revenue from ‘other income’ in FY20 was at Rs 99.6 crore as against Rs 64.2 crore in FY19. When contacted, IKEA said India is an important market for the company and it is investing to offer customers an omnichannel experience.
“India is an important market for IKEA. We are here in India for the long term. We are in the initial years of operations in the country where we are investing in our priority markets to offer customers an omnichannel experience, said IKEA India CFO Preet Dhupar.
Besides its new flagship store in Navi Mumbai, IKEA also has plans to set up two city center stores in Mumbai to cater to the demand from the city. “We are focussed on reaching the many people in our key markets with products and solutions that are affordable, sustainable, follow the best quality standards and relevant to their life at home,” she added.