General Director of the Russian branch of IKEA: the company does not plan to raise prices Erntell, reports TASS. He noted that disruptions in the global supply chain can be smoothed out.
The CEO acknowledged that prices for raw materials and transportation are rising. However, more than half of the goods for IKEA Russia are produced domestically. In addition, the company moved its logistics from sea to land routes. Over the fiscal year (from September 1, 2020 to August 31, 2021), IKEA sales in Russia soared by 31 percent. Online sales also doubled, reaching 20 percent of the total. The year has become “one of the best in the history of the company,” so IKEA changed its mind to raise prices, Erntell noted.
Earlier, Inter IKEA's CFO Martin van Dam warned about price increases. He suggested that fiscal year 2022 (through August 2022) will be even harder than 2021. According to a company spokesman, IKEA will continue to face challenges such as supply disruptions, rising raw material prices and rising energy prices.
IKEA has previously warned that supply chain shortages due to the crisis in supply chains will continue until August 2022 of the year. To cope with the situation, the company had to focus its offer on the most popular products.