The head of Russia’s antitrust agency spoke about IKEA’s exit and what it could mean for competition in the furniture market. In a discussion with RBC, Maxim Shaskolsky, who leads the Federal Antimonopoly Service (FAS), suggested that IKEA’s departure would open the door for healthier rivalry among Russian manufacturers and retailers. This shift, he argued, could recalibrate the balance of power in the sector and stimulate new strategies among domestic players.
Shaskolsky explained that IKEA had effectively “squeezed” the market by concentrating a large share of retail activity in a single model. While the presence of a global retailer brought some competitive pressure, it also limited development in Russian production and distribution channels. He pointed out that although there are solid manufacturing facilities within Russia, the country’s producers did not fully develop the ability to trade through specialized multi-brand centers that offer a complete spectrum of services at the level seen in IKEA’s ecosystem. These dynamics meant Russian suppliers faced a structural gap in service integration, logistics, store concepts, and aftersales support relative to major international chains. (attribution: FAS briefing)
According to the FAS chief, foreign players add a degree of competition but also introduce risks of market concentration in certain formats. The potential for a fewer, dominant network to control pricing, assortment, and access could undermine the competitive balance that healthy markets rely on. Shaskolsky underscored the need for vigilant monitoring to ensure that rivalry remains robust across regions, storefronts, and consumer channels, even as international brands adjust to a post-IKEA environment. (attribution: FAS analysis)
The official noted that the exit of a major foreign retailer is likely to spur rivals to expand their sales footprints, upgrade service levels, and diversify the ways products reach urban and rural customers. He anticipated improvements in distribution networks, more varied showroom formats, and enhanced customer experiences as domestic companies invest in branding, marketing, and aftersales support to capture share previously held by IKEA. The market would likely see a reconfiguration of supply chains, the emergence of new partnerships, and a broader array of financing options for retailers looking to scale. (attribution: industry briefing)
Closure of the Swedish retailer’s Russia operations occurred in March 2022, with statements noting that stores would stay shuttered through the remainder of the year. Since then, reports indicated that several manufacturing sites had been sold or downscaled, signaling a substantial contraction of the retailer’s footprint in the country. Industry observers have tracked these moves as a pivot point for Russia’s furniture sector, with policymakers and business leaders alike weighing how to preserve fair competition, preserve consumer choice, and support domestic producers in a changing landscape. (attribution: market update)