A Swedish retailer, IKEA, which closed its Russian stores in March and finished its final sale in August, has signaled a possible return to the Russian market in the future. A TASS source reports that IKEA will not resume sales in Russia until its operations align with practice in other countries. The company is weighing a comeback once the economic climate improves and enforcement pressure eases.
The plan under discussion envisions reopening stores within a year or two, but only after conditions stabilise. The source indicates that the so‑called blue boxes will likely remain shuttered until IKEA assumes a renewed lease and entry is feasible next year.
Approximately 700 employees of IKEA’s Russian offices would continue to work, maintaining liaison with Swedish headquarters while production and trading are temporarily frozen in the Russian Federation.
Swedish leadership would push to maintain factory sales, but stores would stay closed for the moment. The arrangement would allow factories to operate under their own management in the future, with orders placed at reasonable costs to support a potential restart.
473 Stores Worldwide Across 64 Countries
As of 11 August 2022, IKEA runs 473 stores in 64 countries. The largest concentration is in Germany with 55 stores, followed by the United States with 52, and France with 36. The biggest IKEA store globally is in Pasay City, Philippines.
Historically, IKEA has exited markets before and then re-entered. For instance, it pulled out of Japan in 1987 due to slow sales but returned nearly two decades later through distribution partnerships. It also left Canada in 1988, only to expand again later. In Russia, IKEA opened 14 stores in Mega shopping centers, plus several IKEA City locations and design studios.
Past operations in Russia included factories in Esipovo (Moscow region), Tikhvin (Leningrad region), Veliky Novgorod, and Krasnaya Polyana (Kirov region).
The latest available figures show Ikea Dom LLC reporting 157.2 billion rubles in revenue for the previous year, marking a 27.8% increase from 2020, according to corporate filings.
abrupt Shutdown and Website Disruption
On 3 March, IKEA announced a suspension of operations in Russia and the closure of all stores. The company cited the Ukraine conflict and the resulting strains on supply chains and trade conditions, while affirming its commitment to support about 15,000 Russian employees during the disruption.
In June, IKEA stated there was no near-term path to resuming sales and began selling four Russian factories. A subsequent note clarified that the company would not divest its trading arm, aiming to repurpose production back into Russia only when products from factories overseas could be replenished across collections. A deputy head of Russia’s Ministry of Industry and Trade echoed this stance in discussions at a major economic forum, underscoring that IKEA planned to restart operations when viable.
Interest in plant acquisitions emerged from potential buyers, including AFK Sistema and Slotex, with Vladimir Yevtushenkov among those mentioned. Reports suggested a possible synergy with Segezha Group, a timber conglomerate within AFK, and Hoff, a major Russian household goods retailer that overlaps with IKEA’s footprint but would not acquire stores. An online sale was conducted amid high demand, and the IKEA site faced intermittent access as shoppers queued. By mid-August, the online sales window had closed, and the sole member of Ikea Dom LLC decided to liquidate later in the month.
These developments illustrate a turning point as IKEA weighs its future in Russia while balancing global brand strategy, regional regulations, and evolving market conditions. The company’s approach reflects a cautious reentry plan that prioritizes a sustainable return, should economic and regulatory circumstances become favorable.
All information is based on public statements and industry reporting, with attribution to primary sources where noted in coverage.