Hard times for Ikea: Shortage of goods creates problems
Ikea is feeling the shortage of supplies, which is particularly affecting the furniture industry. Meanwhile, the competition can assert itself in the growing online trade. Since things are not going smoothly, Ikea customers face an unpleasant surprise: prices will rise.
Ikea is known as a provider of affordable homeware, interior design, and most importantly, furniture that many people can afford. This year the furniture dealer has to give up, in terms of sales. In Germany, competition is growing and costing Ikea market share.
Ikea under pressure: customers are threatened with unpleasant awakening
Revenue fell to 5.3 billion euros in the past fiscal year (until the end of August) 3.2 percent less, as the company announced in a press conference (source: FAZ). 2020 was a record year for Ikea. You benefited from the crisis because many people wanted to spruce up their homes.
In the meantime, the group is troubled by the lack of supplies. Again and again popular products not available, long waiting and delivery times are not uncommon:
The slump is even more serious – also thanks to shop closings – in brick-and-mortar retail with around 25 percent less sales. However, the surge in online retailing can absorb a lot of this. According to its own information, Ikea has succeeded in doing the Online sales more than double. But the competition is also strong here, online Ikea is not even the market leader in its own core business. In order to do that, one also has to tackle existing problems.
What Ikea’s challenges mean for customers
In the current situation, Ikea will turn the price screw. Already iNext year, prices are to be raised. How much it is going up was not communicated.
How you can get some money out of your old Ikea furniture, you can find it here:
The reason: delivery bottlenecks not only mean trouble for customers, but also a lack of or delayed income. In addition, would have rising costs for raw materials like wood, metal and foam, hit the group harder than expected. Just a few months ago, Ikea announced that it would revise its range and reduce the prices of many items in the process.
