“The retailer plans to return.” IKEA does not want to sell business in Russia

According to a TASS source, Swedish company IKEA, which closed all its stores in Russia in March and completed its last sale in August, wants to return to the Russian market in the future. “IKEA will not sell to anyone in Russia its work, which it has not done in other countries,” the source said.

The retailer hopes to reopen its outlets “in a year or two after the change in the economic environment and the easing of enforcement pressure”. “The so-called blue boxes will likely be closed until the return of IKEA, which is leased out next year,” the source said.

About 700 employees of IKEA’s Russian offices will continue to work. They will do business for their Swedish counterparts while production and trade are frozen in the Russian Federation.

The company’s factories will continue to be sold due to Swedish pressure, as opposed to stores. However, the transactions will take place “with the option to have these factories produce furniture and other products under their own roof in the future”. [ретейлера] orders at a reasonable cost.

473 stores

As of 11 August 2022 in 64 countries work 473 IKEA stores. Most are in Germany (55 points). In second place is the United States (52), in third place – France (36). The largest IKEA store is located in Pasay City in the Philippines.

For example, previously, IKEA had already left the Japanese market (this was in 1987) due to sluggish sales, but returned again nearly 20 years later, opening opening points in Funabashi and Chiba as part of a distribution partnership with Mitsubishi Corporation. Also in 1988 the Swedish retailer closed its stores in Canada, but then on the contrary sharply. augmented their number.

In Russia, IKEA opened 14 stores in Mega shopping centers, several IKEA City stores and design studios.

The company also had factories in Esipovo (Moscow region), Tikhvin (Leningrad region), Veliky Novgorod and Krasnaya Polyana (Kirov region).

The revenue of Ikea Dom LLC last year, according to RAS, amounted to 157.2 billion rubles, which is 27.8% more than in 2020.

Sudden shutdown and website down

March 3 IKEA announced On the suspension of operations in Russia and the closure of all stores. The company said in a press release that what happened in Ukraine not only resulted in “massive human casualties” but also “significant deterioration in supply chains and trade conditions”. The retailer also promised to take care of 15,000 employees in Russia.

In June, IKEA said it “sees no opportunity to resume sales for the foreseeable future.” It also announced close deals for the sale of four factories in Russia. He later worked at the Ministry of Industry and Trade. highlightedThat IKEA is not selling its trading business. “IKEA sells only factories and not the stores themselves, because they plan to restart their activities in Russia when it is possible to bring products from factories in other countries and completely replenish collections,” said the Deputy Head of the Ministry of Industry and Trade. Viktor from the Russian Federation, St. Petersburg International Economic Forum Evtukhov told reporters on the sidelines.

Among potential plant buyers searched AFK Sistema by St. Petersburg plastic manufacturer Slotex and Vladimir Yevtushenkov.

as they wrote vedomosti, the deal could create synergies with timber conglomerate Segezha Group, which is part of the AFK asset portfolio. Interest in buying the factories was also shown by one of the largest Russian household goods chains, Hoff. They noted that IKEA and Hoff have overlapping presence zones and therefore do not plan to purchase the Swedish retailer’s stores.

Then the company held an online sale of goods due to the large number of buyers, the IKEA website worked intermittently, customers had to “stand” in an online queue. On August 15, sales were finally terminated.

In mid-August, the sole member of Ikea Dom LLC – Ingka Holding Europe BV – decided to liquidate.