Wednesday, November 14, 2012

Ikea sees 85% Growth and Full Sustainbility by 2020

Ikea Burbank Town Center, Hunter Communications photo
Hunter Communications recommended reading from:
Wall Street Journal /
Home Channel News

Link to article:
IKEA Sees Revenue Growing Up to 85% by 2020 /
IKEA commits to become energy independent

Home furnishing giant Ikea has released a corporate report that projects company growth to increase revenue by 85% by 2020, but has also publicized its plans to become energy and resource independent during that same period. Two recent articles, from the Wall Street Journal and Home Channel News, lay out the company's plans to succeed in both sales and sustainability.

Excerpts: (WSJ)" The company's new estimates, which were contained in a sustainability report it released Tuesday, come about a month after Chief Executive Mikael Ohlsson said in an interview that IKEA aims to double its pace of store openings over the next eight years to boost its presence in the U.S. and capture a bigger slice of fast-growing markets such as China.

Mr. Ohlsson, who is set to retire next year, said last month that IKEA will have to invest between €1.5 billion and €2.5 billion annually starting in 2014 to achieve its growth plans.

IKEA estimates it will have 200,000 employees by 2020 and host 1.5 billion visitors at its stores annually, up from about 131,000 workers and 655 million visits now.

Known for its sleek designs at low prices, as well as its blue-and-yellow big-box stores and flat-pack furniture kits, IKEA has been on a hot streak. It has posted a string of sales and profit gains in recent years despite jitters in the global economy."

(Home Channel News)"The IKEA Group plans to become energy- and resource-independent by 2020, according to the chain’s new “People & Planet Positive” sustainability initiative.

Its goal to produce as much renewable energy as is consumed in its stores and buildings builds on the $1.8 billion the company has allocated to wind and solar projects. It also includes improving the energy efficiency in IKEA operations by at least 20% and encouraging suppliers to do the same plans to change more than 1 million light sources inside its stores to LED and other more efficient lighting.

In the United States, IKEA has increased the number of solar installations to 34 stores and distribution centers, with five more underway; which represents 90% solar presence in the United States. Additionally, there are 33 electric vehicle charging stations at nine stores in western United States."

 Note: Hunter Communications handles marketing at Burbank Town Center, home to IKEA Burbank.

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