IKEA Romania presents its business results for another successful year of operations, during which it registered a growth of 14% in sales in FY17 (September 1st 2016 – August 31st 2017), at 586,594,326 Lei w/o VAT. During this period, over 3,3 million people visited the IKEA store in Romania and over 7,5 million of unique online visitors accessed the www.IKEA.ro website.
“We take pride in our excellent growth in Romania, that makes us the number 5 fastest growing country in the IKEA world this financial year. This is the achievement of an everyday stronger and more capable IKEA team of co-workers. Our success is built on our unique Democratic Design and wide online accessibility towards the entire country. We are looking confidently towards the future: we want to make our offer even more accessible to more of the many people in Romania, by opening new stores and improving our e-commerce business capabilities. This year we checked important milestones towards opening the second IKEA store in Bucharest and we increased our storage capacity by 30% in order to increase product availability for online orders. At the same time, we continue to contribute to a better society, with a larger Local Community Involvement Plan, reaching more organisations and people. We strongly believe that our co-workers are our strength and we want to offer them the best work environment and tools. Therefore, in 2018 we will provide Smart Phones to all our colleagues in the store. Moreover, the opening of IKEA Pallady store also means new jobs and growth opportunities for all our current co-workers.” said Stefan Vanoverbeke, Country Retail Manager IKEA SEE.
Excellent growth, built on our unique Democratic Design
3,323,181 people visited the store and the number of IKEA products in the Romanians’ homes has also increased significantly this year. Out of the 18,3 million products sold, 23% were furniture items and 77% decorations and accessories. The best-selling furniture family was BESTÅ living-room furniture: 93,851 pieces, while best-selling in accessories was the OFTAST family of plates: 903,353 pieces. The annual catalogue theme inspired people to renovate their kitchens for a second year and the interest was also influenced by IKEA introducing the new range of affordable kitchens KNOXHULT. A total of 7.700 kitchen were bought during the FY17 financial year.
A total of 127.262 online orders have arrived in the homes of Romanians, most of them from Bucharest, Cluj, Timiș, Iași and Constanța. The online ordering service had an increase of 35.1% compared to FY16. IKEA Romania also worked at improving the customer experience by increasing the capacity of the Call Centre and Service Providers, to secure better performance. Moreover, IKEA increased the storage capacity by 30%, by opening a new Retail Logistic Unit in August 2017 and, thus, improved stock availability for many products.
Romanians love IKEA FOOD, and so the Department, consisting of the IKEA Restaurant, the Swedish Food Market and Bistro, reached a 9.9% sales increase compared to last year. Out of the total sales results of IKEA Romania, IKEA FOOD sales represented 6.1%. The best-selling products in FY17 were: Pick and mix candies (8,8 million pieces), Swedish meatballs (5,8 million), Hot Dogs (2,9 million).
Our co-workers are our strength
In FY17, the IKEA store in Bucharest had a total of 670 co-workers, 15% more than the previous financial year. This was the result of the continuous increase of the local and regional pool of talents and the ongoing hiring process of IKEA Romania. In accordance with the Diversity and Inclusion principles, 49% of co-workers were women and 51% men, while the management positions were held by 51% women and 49% men, on August 31st 2017.
During the last financial year, IKEA Romania continued to invest in the development of its employees and offered over 10,931 training hours and 1,060 hours of workshops. According to our internal surveys, 86% of the co-workers said they are proud to work for the IKEA Company and 92% say they are proud of how IKEA integrates sustainability in everything we do.
In FY18, all IKEA SEE co-workers will receive smart phones, as additional business tool to better serve our customers and exchange information and ideas among themselves. IKEA South East Europe is the first IKEA organization in the world to implement this initiative for all our co-workers.
We care for people and the environment
In FY17, IKEA Romania got involved in several local community projects:
- We launched the IKEA Fund for Urban Environment, a program of grants for environmental projects in Bucharest and Ilfov area. After several rounds of selection, we chose 6 projects out of the initial 80 applicants. The projects, which will be implemented over a period of maximum 3 years, focus on: Urban gardens, Textile reuse and recycling, Solar energy and energy efficiency, Green roofs, Conservation of biodiversity in urban areas, Complex systemic approach of urban neigborhoods.
- Three new organizations are our new partners in supporting a good start in life for all children: Magicamp, Touched Association and Ana și Copiii.
- Tthe total value of all community involvement projects sponsored in FY17 is 350,000 EUR.
- IKEA Romania started its first Local Social Entrepreneur collaboration with the Concordia Bakery in October 2017, resulting in the production of Smiley Biscuits, now available in the IKEA Restaurant. IKEA partners with social entrepreneurs around the world to support economic, environmental and social development. Concordia supports young people coming from vulnerable families to get a certified training as bakers and get a first job inside Concordia, as a start in their adult life.
4.5 % of total sales were generated by the More Sustainable Life at Home range of products, with a total of 942,424 products sold in FY17.
The IKEA store in Bucharest collected almost 1,000 used pieces of furniture (approx. 11 tones) in our „bring back” program, part of which was recycled and part turned into energy.
Moreover, we have started a new campaign to take back lightbulbs: customers will receive 2 new lightbulbs for each 10 used ones brought back to the IKEA Store.
Starting mid-October, all owners of electric or hybrid vehicles can charge their cars in the IKEA parking lot, where we installed electric chargers for 4 cars.
IKEA Romania store in figures, in the 2017 IKEA Financial Year:
- Total sales of IKEA Romania: 586,594,326 lei (w/o VAT)
- Number of store visitors: 3,323,181
- Number of employees: 670
- Best-selling furniture: BESTÅ family of living-room furniture: 93,851 pieces
- Best-selling accessories: OFTAST family of plates: 903,353 pieces
- Visits on www.IKEA.ro: 14,639,519
- Unique visitors on IKEA.ro: 7,583,446
- Visits on the online orders website: 4,302,192 visits
- Unique visitors on the online orders: 1,836,147 unique visitors
- IKEA FAMILY members: 279,000
- IKEA Facebook page fans: 480,915
- Percentage of More Sustainable Life at Home range sold: 4.5%
- Number of sold hot dog: 2,951,102 pieces
- Hot dog sold in kilometers: 532 km
- Meatballs sold: 5,907,313 pcs.
- 75% of the consumed energy comes from renewable sources
- Recycled percentage from total generated waste: 82%
- Recycled cardboard and paper: 1,258 tons, Recycled metal: 56 tons, Recycled wood: 316 tons, Recycled plastic: 80 tons, Recycled glass: 11 tons, Recycled textiles: 24 tons; Recycled electric and electronic equipment waste (includes batteries and bulbs): 24 tons; Recycled edible oil and organic waste from the restaurant: 8 tons
- Furniture collected in our „bring back” program: almost 1000 used pieces
- Consumed energy: 3,940 MWh
- Consumed gas: 1,298 MWh