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Economics

In the News

IKEA's Staggering Revenue Growth Continues

Geoff Riley

10th September 2015

IKEA is one of those go-businesses when you want to applied your understanding and analysis of economies of scale, fast organic growth (yes ... it can happen) and to find a poster-child of globalisation.

8 out of 10 of IKEA's biggest stores can now be found in China and they are by some distance the world's biggest furniture store even if much of what they sell is out-sourced.

In this sense, IKEA is a platform business similar to Adidas and Nike. Their sales growth remains impressive as this Guardian news article explains.

The Guardian report that Ikea's global revenues were €32bn (£23bn) in the year to the end of August 2015, another step towards its corporate objectives of reaching €50bn by 2020. Sales were up 5% on the previous year in comparable stores, indicating that revenue growth is coming from both new store openings and generating additional sales from existing stores.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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