IKEA has posted record full year profits and said it was seeing signs that consumer spending was starting to recover in many of its markets.<br /><br />Net profit for the 12 months up to August 2013 was 3.3 billion euros – an increase of 3.1 percent on the same period a year earlier.<br /><br />IKEA reported strong growth in China, where it opened two new stores, as well as in Russia and the United States.<br /><br />“Consumer spending is improving in many countries,” IKEA CEO Peter Agnefjall said in a statement. “While the challenging economic situation may not be over, there are positive signs.”<br /><br />Southern Europe, still suffering from the effects of the downturn, was showing some positive signs, but sales fell in Spain and Italy, the Swedish group said.<br /><br />Retailers have been struggling particularly in Europe, where IKEA generates nearly 70 percent of its sales.<br /><br />The global economic downturn and austerity measures, mostly in eurozone countries, have hit consumer sentiment and spending power.<br /><br />The company revealed it planned to invest 2.5 billion euros this fiscal year in stores, factories, renewable energy and shopping centers.<br /><br />“By creating better products at lower prices, being more inspiring,improving our existing stores, opening new stores and expanding our e-commerce offer, we plan to double sales by 2020,” Agnefjall said.<br /><br />IKEA – which has been relatively slow to embrace the internet – is aiming for online availability in all its markets, but does not say when it will achieve that. <br /><br />Currently it sells online in half its 26 markets. <br /><br />Neither did it reveal what percentage of its sales come via the internet.
