IKEA calls 2022 an ‘exceptional year’ despite challenges

STOCKHOLM (AP) — Swedish furniture giant IKEA said Thursday that despite “unprecedented challenges” caused by war in Ukraine, supply chain disruptions, rising inflation and fallout persistent effects of the COVID-19 pandemic, 2022 had been an “exceptional year”.

The world’s largest furniture brand recorded retail sales of 39.5 billion euros ($38 billion) in this fiscal year, which ran from September 1, 2021 to August 31. This is an increase of 5.6% compared to the previous year’s sales of 37.4 billion euros.

However, inflation and supply chain issues have caused costs and prices to rise, meaning that sales quantities have declined despite costing more and there have been difficulties in keep the shelves full. Online sales down 10% compared to fiscal 2021.

“We rose to the challenge of delivering strong performance in a disrupted environment, making tough decisions, while always keeping in mind the needs and dreams of as many people as possible,” said Jesper Brodin, CEO of the company. Ingka holding company which manages most of IKEA’s activities. stores.

He said “uncertainties will continue to be part of our lives for years to come”.

Anna Hallqvist Gedda, chief financial officer of Ikea Sweden, told Swedish news agency TT that “the fact that more people are looking for lower prices in times of crisis seems to have benefited IKEA”.

In March, the flatware maker halted retail operations in Russia after the invasion of Ukraine. It then said it had suspended operations at its 17 Russian stores and suspended exports and imports involving the country. It has also suspended operations in Belarus, which is a Russian ally.

He said many of his 15,000 employees in Russia and Belarus would lose their jobs and guaranteed them six months’ pay, plus basic benefits, without giving further details.

This summer, IKEA was selling the rest of its Russian inventory online as it moved forward with its departure from the country.

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