The prices of their products have risen significantly in 2022 due to rising costs and inflation. Because demand had fallen, its annual catalogue ceased publication after 70 years in print. IKEA was hit hard by COVID-19 due to lockdown in various countries, like in the UK and Canada. By October 2022, IKEA laid off about 10,000 Russian employees. About 700 people will continue to work for the company during this period. Later it became known that IKEA does not plan to sell its business, but expects to return to Russia within two years. Due to the ongoing war and unimproved situation in Russia, IKEA said on 15 June that it would sell factories, close offices and reduce its work force. However, Ingka also owns 14 shopping centers across Russia operating under its Mega brand. In March 2022, IKEA announced the closing of all 17 stores in Russia, resulting from the 2022 Russian invasion of Ukraine, the first market in which they suspended business. Another store is expected to open in Colombia by 2023, soon to be followed by a store in Peru. This is its the first store in South America. On 10 August 2022, IKEA opened its first store in Chile. In November 2021, IKEA opened its largest store in the world, measuring 65,000 square metres (700,000 sq ft), in the Philippines at the Mall of Asia Complex in Pasay City. There are now stores in Bengaluru and Mumbai. In August 2018, IKEA opened its first store in India, in Hyderabad. As for the region's largest markets, on 8 April 2021, a store was opened in Mexico City. IKEA entered Latin America in February 2010, opening in the Dominican Republic. Germany, with 53 stores, is IKEA's biggest market, followed by the United States, with 51 stores. IKEA further expanded in the 1980s, opening stores in countries such as France and Spain (1981), Belgium (1984), the United States (1985), the United Kingdom (1987), and Italy (1989). The stores spread to other parts of Europe in the 1970s, with the first store outside Scandinavia opening in Switzerland (1973), followed by West Germany (1974), Japan (1974), Australia, Hong Kong (1975), Canada (1976), Singapore and the Netherlands (1978). The first stores outside Sweden were opened in Norway (1963) and Denmark (1969). The first store was opened in Älmhult, Småland, in 1958, under the name Möbel-IKÉA (Möbel means "furniture" in Swedish). In 1943, then-17-year-old Ingvar Kamprad founded IKEA as a mail-order sales business, and began to sell furniture five years later. No current or planned market locations The world's largest IKEA store is located in Pasay, Metro Manila, Philippines However, IKEA has been shown to be involved in unsustainable and most likely illegal logging of old-growth and protected forests in multiple Eastern European countries in recent years. IKEA claims to use 99.5% recycled or FSC-certified wood. The group is responsible for approximately 1% of world commercial-product wood consumption, making it the largest individual user of wood in the world. The IKEA website contains about 12,000 products and there were over 2.1 billion visitors to IKEA's websites in the year from September 2015 to August 2016. Some IKEA stores are also operated by independent franchisees. Another part of the IKEA group, Ingka Group, operates the majority of IKEA stores as a franchisee and pays royalties to Inter IKEA Systems B.V. which handles branding, design, manufacturing, and supply. Within this structure, all IKEA stores are operated under franchise from Inter IKEA Systems B.V. For multiple reasons, including lowering taxes payable, IKEA uses a complicated corporate structure. In addition, the firm is known for its attention to cost control and continuous product development, notably, the ready-to-assemble model of furniture sales, and other elements which have allowed IKEA to establish lower prices than its competitors.Īs of March 2021, there are 422 IKEA stores operating in 50 countries and in fiscal year 2018, €38.8 billion ( US$44.6 billion) worth of IKEA goods were sold. The group is primarily known for its modernist furniture designs, its simple approach to interior design, and its immersive shopping concept, based around a showroom of decorated room settings, in which customers can interact with the available articles onsite. The brand used by the group is derived from an acronym that consists of the founder's initials, and those of Elmtaryd, the family farm where he was born, and the nearby village Agunnaryd (his hometown in Småland, southern Sweden). Started in 1943 by Ingvar Kamprad and currently headquartered in the Netherlands, IKEA has been the world's largest furniture retailer since 2008. Inter IKEA Systems B.V., doing business as IKEA ( / aɪ ˈ k iː ə/ eye- KEE-ə, Swedish: ), is a Swedish multinational conglomerate based in the Netherlands that designs and sells ready-to-assemble furniture, kitchen appliances, decoration, home accessories, and various other goods and home services.
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