One of Denmark's largest furniture and home furnishing chains has reported a turnover of 1.42 billion Danish kroner for the financial year 2023/24, reflecting a three percent increase. The company, ILVA, also saw an eight percent growth in the Swedish market and a remarkable 17 percent rise in turnover on its webshop.
Despite these positive figures, ILVA faced challenges that affected its financial results, ending the year with an EBIT of -45 million Danish kroner. In comparison, the previous financial year saw a turnover of 1.38 billion Danish kroner and an EBIT of -27.6 million.
'We, like all other players in the industry, have been affected by the uncertainty and inflation that have impacted the market and customers' purchasing power. This has affected our income, but we are already sensing a more stable market and a positive trend,' says ILVA's CEO, Kim Møller Mønster.
ILVA CEO, Kim Møller Mønster.
Investments in future growth
This is the first financial statement Kim Møller Mønster has presented since taking office in April. One of his initial tasks was to launch a new strategy aimed at creating a more frictionless and inspiring customer journey.
'Our strategy focuses on two key areas: increased digitization and strengthening our physical store concept. We are prioritizing both to create a seamless experience for customers, regardless of where they interact with us,' Mønster explains.
The strategy includes several investments that aim to improve immediate results while ensuring ILVA's strong market position in the long term. This involves acquiring new data management systems (PIM and CDP) and implementing a digital warehouse solution. Additionally, ILVA is working on greater integration of AI solutions and making its entire product range available online.
'We are investing in the future. To continue growing, we need to allocate resources to strengthen our business, both online and in physical stores. We have redefined our concept and will reduce the square footage in several stores to focus more on the depth of our collections rather than breadth, presenting a more targeted selection to customers,' Mønster states.
Continued expansion
Alongside the dual strategy, ILVA is also expanding its chain. In October, a new store was opened in Jönköping, and another store will open in Skive, Denmark, on November 1. A new location in Thisted, Denmark, is set to open in March. During the 2024/25 financial year, ILVA plans to further implement its strategy and introduce a new brand strategy next year.
'We want to ensure that ILVA's value proposition is communicated clearly, both internally and externally, so we can continue to create value for our customers and employees. I am confident that we are on the right track to realize this vision, and that ILVA has a strong foundation for the future,' concludes Kim Møller Mønster.
More information:
ILVA
www.ilva.se