Ikea sales grow 12.8% in 2005
Bronfman's buy paying off as sales hit NIS 394 million
For the first time Ikea?s Israel branch has published financial numbers. Nine months ago Matthew Bronfman bought the Israeli franchise of the Swedish home furnishings stores, and the results are impressive.
Ikea?s Israel sales grew 12.8% in 2005 from 2004, reaching NIS 394 million.
While the firm refused to divulge profits, estimates are that net profits reached 10% of sales. About NIS 39 million for 2005. In the past TheMarker published that Ikea?s 2004 profits were NIS 35 million, also 10% of sales for the year.
CEO Shlomo Gabay said that the company?s sales growth was reflected in all sectors, but in particular in bedroom furniture which jumped by 25%. Children?s furniture sales rose 28% due to lower prices and a wider selection. Kitchen sales rose 18% and leather sofas 72%.
?We are mostly a furniture store,? explained Gabay, with 60% of 2005 sales being furniture and the rest home accessories.
Ikeas had 2.3 million customer visits in 2005.
The second Ikea store in Israel is expected to open in 2007 near Rishon Letzion.