IKEA reports record sales as price hikes offset weakening consumer confidence
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STOCKHOLM, Oct 13 (Reuters) – Budget furniture giant IKEA reported record high annual sales on Thursday as price hikes and easing effects from the pandemic made up for supply shortages, weakening consumer confidence and its exit from Russia.
Inter IKEA, franchiser for the world’s biggest home furnishing brand, said sales at all IKEA stores and online grew 6.5% in the 12 months through August, or 3.5% measured in local currencies, to 44.6 billion euros ($43.3 billion).
“Inflation and supply chain issues impacted FY22 sales, and led to rising costs and higher prices. That means sales have grown in money, but sales quantities have not kept up,” Inter IKEA said in a statement.
“In addition, supply chain shortages made it difficult to keep IKEA shelves full,” it said.
Ingka Group, which owns the bulk of stores including those in main market Europe, and the closed ones in Russia, said separately its sales rose 5.6%, or 2.2% in local currencies, to 39.5 billion euros.
Ingka Group said in a statement sales grew in most of its markets and availability of products improved overall.
($1 = 1.0309 euros)
(Reporting by Anna Ringstrom; Editing by Emelia Sithole-Matarise)
