Nothing stops flatpack: IKEA reports ‘exceptional year’ despite pandemic, war and inflation

Nothing can stop the sale of flat pack furniture, it seems, not even a pandemic, Russia’s invasion of Ukraine or global inflation.

IKEA has announced that it had an “exceptional” 2022 despite the “unprecented challenges” which have shaken the globe over the past year.

The Swedish home furnishings giant has reported retail sales of 39.5 billion euros (£34 billion) this financial year (1 September 2021, to 31 August 2022) – a 5.6 per cent increase from the previous year’s sales of 37.4 billion euros (£32 billion).

IKEA did, however, note that inflation and supply chain issues, which led to rising costs and higher prices, meant sales quantities were down. As such, online sales dipped by 10 per cent from the 2021 financial year.

“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 that manages most of IKEA’s stores.

Mr Brodin said “uncertainties will continue to 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 world’s biggest furniture brand 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 involving the country.

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It also paused operations in Belarus, which is a Russian ally. It has said many of its 15,000 employees in Russia and Belarus would lose their jobs and has guaranteed six months of pay for them, as well as core benefits, without offering more specifics.

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

With additional reporting from the Associated Press