Retail sales for the world’s largest home furnishings retailer, IKEP, fell 7.2 percent in the three months ended September, marking the second straight quarter of decline.
The retailer has struggled to sustain sales growth after a record year in 2016 and has reported losses of more than $1 billion since the end of 2018.
While sales fell, IMAX sales rose 2.4 percent, the biggest gain among the top five exhibitors.
The exhibitors that posted the biggest increases were Germany’s Zhejiang Ombudsperson, which increased 11.9 percent and Japan’s Panasonic, which grew 4.3 percent.
“The outlook for the full year is very positive, as we have seen a strong growth in the past few quarters, and I am very optimistic about the outlook for 2018,” said IKEp Chairman and CEO Jens-Dieter Pohle.
“The strong growth will be reflected in sales of furniture and accessories, with the IMAX business set to remain a strong performer in 2019.
Pohle also noted that IKEs sales are set to grow at a faster rate than other top-tier exhibitors, and that its sales growth is being driven by customers who have recently entered the market.
Overall, the retail industry is expected to grow about 7 percent this year and 8.7 percent in 2020, according to the IKES Annual Retail Outlook released Sept. 14.
Last year, ICP had a sales forecast of around 2.2 billion euros ($2.7 billion) for 2020, a figure it expects to hit this year.