IKEA stores' turnover grows to €97 million in Estonia
Runikon Retail, which operates IKEA stores in Estonia, increased its turnover by nearly €6 million in the past financial year, reaching nearly €97 million. The company posted a profit of €5.6 million.
Runikon Retail said in its report that its turnover in the past financial year — which began in September 2024 and ended at the end of August last year — was most affected by high Euribor rates, which slowed activity in the real estate market and increased borrowing costs.
The company noted that Estonian households have become more cautious due to geopolitical uncertainty and slowing economic growth. Despite this, the operator of IKEA stores in Estonia observed that people are spending more on creating home offices and are upgrading living rooms as well as children's and bedrooms.
Last year, Runikon Retail's turnover totaled €96.957 million, nearly €6 million more than in the previous financial year. The majority of sales revenue came from the retail sale of furniture and lighting, while 30 percent of turnover was generated by the retail sale of other household goods.
Restaurants and cafés accounted for 3.6 percent of sales revenue and nearly 1.5 percent came from the retail sale of other food products. The sale of services — including furniture assembly, postal and courier services — made up just over 2 percent of the company's turnover.
Profit amounted to nearly €5.626 million, down from the previous year's nearly €6.673 million.
The company employed an average of 431 people during the reporting year, compared with 435 the year before. Runikon Retail spent €13.271 million on labor, a figure that included not only wages and social taxes but also temporary staffing costs and changes in vacation reserves.
For the current financial year, Runikon Retail is planning turnover growth, as Estonia's economy is forecast to see stable growth, which is expected to positively affect household purchasing power. The largest investment this year, totaling €1.1 million, will be directed toward digital development.
IKEA began operating in Estonia in 2019, initially in digital form, with a planning and order point opened in Tallinn. An order point was added in Tartu in 2021 and the Sweden-founded group opened a store in Estonia in 2022.
In 2024, an expanded planning studio was opened in Tartu and last summer a small-format IKEA store was added in Pärnu.
Runikon Retail's parent company is Netherlands-registered Inter IKEA Retail Holding B.V., which belongs to the Inter IKEA Systems B.V. group.
--
Editor: Karin Koppel, Marcus Turovski
