By its own admission, "2009 was a tough year" for IKEA. The interesting aspect of that admission is that it comes in the furniture retailer's first ever financial report.
The privately-held company decided to publish the document as part of a process to become more transparent to stakeholders including its employees, customers and vendors. IKEA is not only looking to provide financial results but to share how it is using revenues and profits both to run the company and fund its more altruistic ventures, as well.
Daniel Lucht, senior consultant at Verdict Research, told The Wall Street Journal that it was "a good move" for IKEA to be more open."They have a fantastic reputation for the charity work they do that goes hand-in-hand with their leading position," he said.
According to the report, IKEA grew revenues by 3.1 percent in 2009. The increase was a result of opening 15 new stores during the year. Same-store numbers for the company were actually down 1.1 percent. Profits for the company were up 11 percent in 2009 compared to the previous year.
Discussion Question: What advantages and/or disadvantages are there to IKEA's financial transparency?