IKEA stops selling kitchen furniture and home appliances in Russia

UrBC, Moscow, January 27, 2016. IKEA announced a price decrease on January 26, Vedomosti refers to General Director IKEA Russia Walter Kadnar as saying. Prices will be reduced by 15% to 20% for about 20% of the retailer’s product range, that is, 1,800 different items. For some items, the price decrease will come to 40%. Kadnar points out this is a long-term program rather than just a sale or a promotion campaign. The main factor behind this is the launch of IKEA’s fifth furniture factory in Russia last fall. In fact, most of the price decreases will involve kitchen furniture and wardrobes,

Governor of Sverdlovsk Region Eduard Rossel met a group of IKEA delegates headed by IKEA GD in Russia and the CIS. According to IKEA’s top executive, the company would like to put up some lumber mills and furniture factories in Sverdlovsk Region and is willing to invest 2 billion RUR in the project. The Governor was requested to decide what land allotments with some timber reserves nearby would make suitable premises for the plants and factories. Mr. Rossel replied that Sverdlovsk Region’s timber industry was a rather developed one, so it’s a bit peculiar to see that IKEA only does business

‘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.

August 11, 2014. IKEA Russia is prepared to look for alternative solutions that will help to keep its grocery stores attractive to customers despite new food regulations. The company press service informed UrBC that they are currently looking into the list of agricultural produce, raw materials, and foods that can no longer be imported to Russia in order to determine how these economic measures can affect their range of products. ‘We’ll look for some alternative solutions if necessary, which will allow us to keep making appealing offers to our IKEA Restaurant, IKEA Bistro, and IKEA Foods

The Swedish furniture maker IKEA is calling off 6,000 children’s beds due to a production fault. According to the company’s press service, the beds in question, Sniglar, made at IKEA’s Rumania-based factories, are now being called off in Canada. The problem is that the fastening bolts for the beds turned out to be too short; as a result, the beds can collapse and therefore hurt the children. The beds were sold between October 2005 and June 2010, RBC reports. IKEA pointed out that no problems have been recorded up to now. However, the company strongly recommends that all Sniglar beds should be