IKEA Israel has published its financial report for 2006. The company’s sales rose 8.4% to NIS 427 million in 2006, from NIS 394 million in 2005.
Ikea Israel expects that the opening of the new branch in Rishon LeZion will cause a 25-30% drop in sales at its Netanya store. However, Ikea Israel general Shlomi Gabay said that the combined turnover of both stores would most likely be 50% higher than that of the Netanya store alone. The company has set a sales target of NIS 250 million for the new store in its first year, with the Netanya store expected to reach NIS 350 million sales during the same period.
2.5 million people visited Ikea Israel’s Netanya store in 2006, 4% more than in 2005. Average spend per customer was 3% higher than in 2005. The company said the increase was due to the rise in purchases of furniture, which accounted for 60% of total spending at the store in 2006.
The new 25,000 sq.m. store in Rishon LeZion is due to open in the second half of 2007. Adjacent to the store will be an 8,000 sq.m. logistics center, which will create 400 new jobs.
Published by Globes [online], Israel business news - www.globes.co.il - on February 11, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007