IKEA earns €4.5 million profit in Estonia in 2020
Retail company Runikon Retail, which operates under the IKEA brand in Estonia, earned a profit of €4.5 million on sales of €26.5 million in the financial year ended on August 31, 2020.
The last financial year was the first year of operation for the company and, due to that, the result cannot be compared to the previous year, the company said in the annual report.
The management of Runikon Retail points out that the restrictions imposed due to the spread of the COVID-19 virus had a direct positive impact on the company's revenue. Specifically, between March 2020 and August 2020, turnover grew by 21.5 percent compared to the September 2019 to February 2020 period.
According to the management board, the increase in the volume of orders and resource constraints have made the efficiency of order fulfilment a key objective for the company. To this end, €46,000 was invested last year in the introduction of a new scanning system. This will automate the assembly of orders and significantly speed up the delivery process.
In addition, the company invested €34,000 in computer equipment and €36,000 in other warehouse equipment.
The company employed on the average 78 people last year, whose wage costs totaled €1.3 million.
In connection with the opening of an IKEA store in Estonia in the next few years, the company plans to hire area managers during 2021.
IKEA's pick-up and ordering point in Estonia, located at 66/1 Peterburi Road in Tallinn, opened on August 28, 2019.
Runikon Retail OU operates the IKEA pick-up and ordering point in Estonia on the basis of a franchise agreement entered into with Inter IKEA System B.V. The company operates the Estonian online store of IKEA.
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Editor: Helen Wright