Ikea targets a 25% market share in Germany

Source:Z&L Furniture Add Time:2014-01-06

Ikea has ambitious growth plans for the EUR 30 billion German furniture market. ''In Germany we have a present 13,5 percent market share. 25 percent are realistic'', said Peter Betzel, Managing Director for Ikea Germany, to the German newspaper Handelsblatt.

Betzel, who has headed Ikea's business in Germany since 2011, estimates a period of 8 to 10 years for this growth, backed by the opening of additional stores.

At the present, Ikea has 46 stores in Germany. Betzel sees potential for an extra 20-25 new stores, plus an expansion of online trade. The current levels for internet sales are modest: in the fiscal year 2012/2013 (end of August), Ikea had a turnover of EUR 3.99 billion in Germany, of which only EUR 92 million from internet sales.

Thus Ikea plans to expand its online business: in one to two years, the range of products that customers are able to find in stores, will be available in the webshop. That would be around 7000 articles, more than twice as in the present.