We cancelled contract with IKEA Torg Ltd. due to zero profitability, reports Urallesprom Ltd.

26 March 2007 (12:34)

‘The reason for canceling our contract with IKEA Torg (Trade and Real Estate) Ltd. was zero profitability. IKEA only offers disadvantageous working terms; their prices don’t keep up with the inflation rate (12% in 2006 plus the statistical inflation), which made us lose about 30% of profits,’ Sales Director of Urallesprom Evgeniy Perov said to UrBC.

‘What is more, the raw stuffs and electricity prices soared last year; besides, our outgoings went up due to pay rises. IKEA Torg, however, refused to consider these factors, and we had to cancel our contract with them,’ Mr. Perov explained.

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