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Ikea expects supply woes to spill into 2022
The group posted record turnover of 41.9 billion euros ($48.7 billion) between September 2020 and August 2021, a six percent jump from the previous fiscal year, according to Inter Ikea.
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People walk outside the Europe's biggest Ikea store in Kungens Kurva, south-west of Stockholm on March 30, 2016. Ikea founder Ingvar Kamprad, who built a global business empire with revolutionary flat-pack furniture and dallied with Nazism in his youth, turned 90 today. (Agence France -Presse/Jonathan Nackstrand)
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kea's annual sales have surpassed pre-pandemic levels but global supply shortages that have pestered the Swedish furniture giant will persist well into 2022, its holding company said Thursday.
The group posted record turnover of 41.9 billion euros ($48.7 billion) between September 2020 and August 2021, a six percent jump from the previous fiscal year, according to Inter Ikea.
"It wasn't easy. Keeping IKEA stores and warehouses stocked has been a challenge," Inter Ikea said in a statement.
"During FY21 we saw a substantial drop in availability that we have not yet recovered from, and this will continue far into FY22 (which ends in August 2022)."
Suppliers have struggled to keep up with a surge in demand for goods as economies have reopened following lockdowns and restrictions imposed due to the Covid pandemic.
There are not enough containers to meet demand and goods are stuck in bottlenecks at major ports.
Despite the supply issues, Ingka Group, the main franchisee of Ikea that runs 378 of 422 stores worldwide, also reported a six percent rise in turnover, propelled by online shopping and a change in consumer habits as people have been forced to work from home.
"Throughout the last year, the way people live, work and socialise has dramatically changed and the need for multifunctional and clutter-free living spaces has increased," the group said.
"The company sees a higher demand for workplace furniture, outdoor furniture and storage solutions."
