IKEA in Germany: Default decline despite strong online growth!

IKEA in Germany: Default decline despite strong online growth!

Deutschland - The Swedish furniture giant Ikea had to accept a shocking loss of sales of 4.3 percent in the 50th year of its existence in Germany! With revenue of 6.16 billion euros, the company remains in second place in the German market, which it still dominates. The reasons for this decline are alarming: high inflation, rising interest rates and a subdued demand for consumption are attributable to the giants.

Booming online sales!

In a remarkable trend, Ikea now achieves around a quarter of its sales over the online channel. The numbers are impressive: the number of visitors on the website increased by 15 percent to 252.6 million compared to the previous year! In contrast, the physical business recorded only 79.5 million visitors - a decline of 2.9 percent. Consumers seem to turn to online shopping, while traditional business is under pressure.

The challenges in front of which Ikea is facing should not be underestimated. The furniture dealer has to adapt to stay competitive in a rapidly changing market environment. The combination of economic uncertainties and a change in consumption behavior could significantly influence the future of the company.