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IKEA Hypermarkets Revise Prices
December 5, 2014 17:20


IKEA hypermarkets for home goods intend to revise the existing prices. The prices on the furniture and household goods which are popular among Russians will rise, despite the fact that more than 60 percent of IKEA goods are produced in Russia, as the economic situation in the whole country is deteriorating.

“Significant changes in the exchange rate, the rise of the prices on raw materials for furniture production, as well as the increase in transportation tariffs have a visible influence on the financial results of the company” - the press service of IKEA told to “”.

It is emphasized that the operating activities of the company cannot be independent on external factors. Now IKEA is developing a plan of actions that will determine when the prices will rise, which prices these will be and how much higher they will become. The company refused to specify when exactly a price increase is to happen.

The official report states that IKEA is doing everything possible to reduce the effect of these forced changes on customers, and ensures that it will still be able to provide the best offer on the market in each product category. In the opinion of Evgenii Blyakhovich, the former co-owner of the woodworking company, the chief of staff of the all-Russian political party “Pravoe Delo”, the future rise in prices of the goods of Swedish brand has little to do with the fall of the rouble exchange rate, but it’s connected with the loss of the company’s dominant position as a manufacturer of furniture.

“Woodworking companies gave the Swedish concern discounts on prices on high quality wood, if they had long-term relationships with IKEA” - he said. “But now the manufacturers raised the prices on raw materials, and the most part of them did not agree to the proposal of IKEA to sell wood for old prices".

Furthermore, as Blyakhovich explains, now the Russian furniture manufacturers are ready to purchase almost any amount of goods from the manufacturers for advance payment. As a result, almost all of them found their partners among Russian furniture companies. According to the expert, now IKEA will have to use imported raw materials for the manufacturing of furniture, which will have the greatest impact on the price labels in the stores.

Author: Anna Dorozhkina

Tags: Russian business     

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