AP

IKEA calls 2022 an ‘exceptional year’ despite challenges

Oct 13, 2022, 6:04 AM | Updated: 9:23 am

STOCKHOLM (AP) — Swedish home furnishings giant IKEA said Thursday that despite “unprecedented challenges” caused by the war in Ukraine, supply chain disruptions, increased inflation and lingering fallout from the COVID-19 pandemic, 2022 had been an “exceptional year.”

The world’s biggest furniture brand reported retail sales of 39.5 billion euros ($38 billion) this financial year, which ran from Sept. 1, 2021, to Aug. 31. That was a 5.6% increase from the previous year’s sales of 37.4 billion euros.

However, inflation and supply chain issues led to rising costs and higher prices, meaning sales quantities were down though they cost more and there were struggles to keep shelves full. Online sales were down 10% from fiscal 2021.

Plus, IKEA’s exit from Russia and Moscow’s ally Belarus because of the war in Ukraine has meant letting go some 10,000 of its 15,000 workers in both countries.

“We lived up to the challenge — achieving solid performance in a disrupted environment, making tough decisions, while always keeping sight of the needs and dreams of the many,” said Jesper Brodin, chief executive of the holding company Ingka Group that manages most of IKEA’s stores.

He said “uncertainties will continue be part of our lives in the coming years.”

Anna Hallqvist Gedda, chief financial officer of IKEA Sweden, told Swedish news agency TT that “the fact that more people are chasing lower prices in expensive times seems to have benefited IKEA.”

In March, the maker of flat-pack home products halted its retail operations in Russia after the invasion of Ukraine. It then said it suspended operations at its 17 Russian stores and paused exports and imports there. It also paused operations in Belarus.

Ingka said about 10,000 employees in Russia and Belarus will have left by the end of October.

“Affected co-workers entered a mutual agreement process and were offered a compensation package that significantly exceeded the standard,” the company said in a statement.

It previously said it guaranteed six months of pay and core benefits.

This summer, IKEA was selling the remainder of its Russian inventory online as it moved forward with leaving the country.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

The U.S. Supreme Court is seen, Thursday, Feb. 8, 2024, in Washington. The U.S. Supreme Court has h...

Associated Press

Supreme Court decision on Trump’s election status could come Monday morning

A SCOTUS decision could come Monday in the case about whether Trump can be kicked off the ballot over his efforts to undo his 2020 defeat.

1 day ago

Republican presidential candidate former UN Ambassador Nikki Haley poses for a selfie after speakin...

Associated Press

Nikki Haley wins D.C. Republican primary, her first 2024 victory

Nikki Haley has won the Republican primary in the District of Columbia, notching her first victory of the 2024 campaign.

1 day ago

An Apache group that has fought to protect land it considers sacred from a copper mining project in...

Associated Press

A US appeals court ruling could allow mine development in central Arizona on land sacred to Apaches

An Apache group that has fought to protect land from a copper mining project in central Arizona suffered a significant blow.

1 day ago

On Friday, March 1, 2024, the U.S. Food and Drug Administration said yogurt sold in the U.S. can ma...

Associated Press

Eating yogurt may reduce risk of type 2 diabetes, FDA says

Eating at least two cups of yogurt a week might reduce the risk of type 2 diabetes, the U.S. Food and Drug Administration said.

1 day ago

Arizona will not approve new housing construction on the fast-growing edges of metro Phoenix that r...

Associated Press

Arizona Senate passes plan to manage rural groundwater, but final success is uncertain

A plan to manage rural groundwater passed the Arizona Senate amid concerns about the availability of sufficient water for future generations.

3 days ago

A woman pauses while shopping at a Kohl's store in Clifton, N.J., Jan. 26, 2024. On Thursday, Feb. ...

Associated Press

Federal Reserve’s preferred inflation gauge picked up last month in sign of still-elevated prices

An inflation gauge favored by the Federal Reserve increased in January, the latest sign that the slowdown in U.S. consumer price increases is occurring unevenly from month to month.

4 days ago

Sponsored Articles

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

IKEA calls 2022 an ‘exceptional year’ despite challenges