Monday, December 11, 2023

The home decor business was reorganized, a sector that generated $35.4 billion

Have you bought a new couch, chair or small lamp? All of this adds up to a home decor and accessories market that will total $35.4 billion by 2022., according to Euromonitor figures. But that sector has recovered especially this year.

Ashley Furniture, the American manufacturer and retailer that was created in 1945 and now receives more than 25,000 customers per day, has recently arrived in Colombia. arrived this year in the city of Bogotá with a 1,500-square-meter, two-story facility.

And from Sweden, tomorrow will open a giant of the world industry: Ikea, making the first step in the national territory. This Thursday it will open the doors of its point in Mallplaza, this is the beginning of its expansion in Colombia, because in 2024 they hope to open two more locations.

It was only in 2018 when Torbjörn Lööf, then CEO of the Inter Ikea Group, told LR exclusively that First they need to enter Chile, because it is “the market with the most experience in this area”, and then they will focus on opening a store in Peru and then in Colombia.

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The first point of sale of Ikea has a space of 26,000 square meters, a portfolio of 6,000 products and its restaurant with a capacity of 600 people.

Worldwide, Ikea was able to invoice US$29,185 million in its 400 stores in 62 markets, this revenue increased by 7.67% compared to 2021, where they reached the figure of US$27,107 million. In terms of profit, the company was able to reach US $ 751 million last year.

Ikea arrived in a difficult economic period for the market due to high rates and inflation, because in the area of ​​decoration and garden stores After the pandemic, there was a high demand that led to a change in turnover of 19% between 2020-2021, but it decreased 7.5% between 2021 and 2022.

A similar situation occurred in home goods stores, as they generated $12.4 billion in 2021 and continued to charge $12.08 billion last year, which translates to a decrease of 3.1%. In general the two parts of the market, there is a decrease of 10.6%.

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Ashley’s breakthrough

So far the American company has exceeded its initial projections. “More than 10,000 people have already visited our store in the first two months. We managed to sell 10 times more than we budgeted for and at the end of the day, well, Ashley started redefining the furniture market in Colombia” said Pablo Sardi, general manager of Ashley Colombia.

The manager of the American brand confirmed that his competitors in the country have marked parts of Scandinavian styles, but there are other styles that have been left out. Ashley’s goal is to get the most out of her clients. “In our case, there is a very convenient purchase with a stock that has a price range with many styles of nine, because they make it convenient,” Sardi pointed out.

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Among the main actors that Ikea will encounter in the Colombian market are Homecenter, a business belonging to the Chilean group Sodimac, this company in its operations in Colombia generated $5.9 billion and revenue of $349,673 million in 2022 and has 41 stores including the one recently opened in Sincelejo, where they want to tour the intermediate cities.

Another powerhouse that Swedish commerce has in the national territory is Falabella, also from the Sodimac Group. In 2021, the company generated revenue of $42,310 million and it increased to $3,895 million in 2022, reaching $46,205 million and revenue of $2.5 billion. It has 26 points of sale throughout the national territory.

Easy, a Cencosud company, can also be one of Ikea’s competencies. It has 16 points of sale and last year it had an operating income of $4.63 billion which surpasses Falabella despite having 10 fewer selling points.

Nation World News Desk
Nation World News Desk
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