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Wednesday, January 12, 2011

IKEA Israel sales up 40% in 2010

The opening of the second store in Rishon LeZion boosted the number of visitors by 56%.

With the opening of IKEA Israel's second store in Rishon LeZion in March 2010 it was possible to assume that it would greatly boost sales. IKEA Israel, controlled by Matthew Bronfman, today published its sales figures for 2010, which show a 40% increase to NIS 678 million from NIS 496 million in 2009. Furniture sales accounted for 65% of the total, and sales of accessories for the rest.

The opening of the Rishon LeZion store also boosted the number of visitors by 56% to 3.5 million in 2010. As a private company IKEA Israel is not required to publish full quarterly financial reports, so it is not possible to know how the increase in activity affected its profits.

4.5 million people visited IKEA Israel's website in 2010, 40% more than in 2009. The average visit lasted seven minutes.

IKEA Israel CEO Shlomi Gabbai said, "The growth in sales in 2010 was in all areas of activity, most prominently in kitchens and dining rooms with 56% growth. Mattress sales rose 53%, sales at the children's department rose 48%, and textiles sales rose 50%. Sales by the business department, which specializes in sales to businesses, and has been operating for four years, also rose 10% in 2010, compared with 2009."

IKEA International Group has 320 stores in 38 countries. Sales in the fiscal year ended August 31, 2010, totaled €23.8 billion.