Ikano Retail, the parent company of IKEA Philippines, reported a modest decline in revenues due to rising consumers prices.
Christian Roejkjaer, Ikano Retail chief executive officer, said the company closed its financial year ending Aug. 31 in the Philippines with a turnover of EUR141 million (around P8.8 billion), a decrease of two percent from the previous year.
Roejkjaer attributed this revenue decline to ongoing inflationary pressures and the rising cost of living, which have affected consumer spending worldwide.
Despite these challenges, Roejkjaer noted the company's resilience and its ability to adapt to difficult market conditions.
“Worldwide, retail had a tough year, and so did we,” Roejkjaer said, acknowledging the impact inflation and the rising costs of living have had on consumers.
"While we faced headwinds, our Ikano and IKEA company culture is built on turning challenges into opportunities," Roejkjaer said. "We remain committed to lowering prices on essential and best-selling items, food, and services to provide relief to our customers.”
To alleviate the financial strain on Filipino households, IKEA Philippines has implemented a series of price reductions on over 2,000 products, including essential items like sleep solutions and cookware.
Additionally, the retailer has reduced the costs of parcel and delivery services and is offering free Click & Collect options to help customers save money.