IKEA Korea's sales drop 9% to suffer first decline since entering S. Korean market

IKEA Korea’s sales plunged 9 percent to US$475 million for its fiscal year 2022, suffering its first sales after eight years of continuous growth in its South Korean operations..

The South Korean arm of the Swedish furniture maker’s operating profit dropped 26 percent year on year to 16.8 million, with its net profit falling by 36 percent.

IKEA Korea blamed poor sales on declining visitors to its brick-and-mortar stores.

In the fiscal year 2022, the store welcomed about 66.8 million offline and online customers, down about 5 percent from a year ago.

The decline in home sales and demand for furniture dealt another blow to IKEA Korea’s sales.

Nonetheless, IKEA Korea plans to open three stores in the Seoul metropolitan area and another in Busan to expand the contact points with customers and boost sales.