Sweden's IKEA, the world's biggest furniture retailer, has reported its fiscal full-year sales grew 7 percent to a record 34.2 billion euros ($38.4 billion). As Sonia Legg reports, China and Germany were key markets.
It may be the king of flat-pack furniture but there's nothing flat about Ikea's sales. The privately-run Swedish company has reported a 7 percent increase in fiscal full-year sales to a record 34.2 billion euros. The increase was 11 per cent last year and slightly less than forecasts made by Ikea's chief in June. Then the sales target was 50 billion euros in 2020. (SOUNDBITE) (English) City Index, Market Analyst, Ken Odeluga, saying: "They do seem to manage their cash well, they're expanding, taking advantage of the benign environment for borrowing to actually fund that expansion and the western consumer seems to be in the mood to buy because saving is a bit more challenging." That's certainly the case in Europe where interest rates are low or in some cases negative. Ikea saw record growth in Germany - its biggest market - with the U.S. not far behind. Its fastest growing region was China, followed by Australia, Canada and Poland. And this year India and Serbia with get their first Ikea outlets. 12 news stores have opened this year - it now has 340 in 28 countries.