Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

IKEA reopens for online fire sale in Russia before market exit

Stock Markets Jul 05, 2022 14:32
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Customers walk in IKEA store, in Moscow, Russia, March 3, 2022. REUTERS/Staff

MOSCOW (Reuters) -IKEA will open for business for a final time in Russia on Tuesday, with customers permitted to buy goods in an online-only fire sale before the Swedish furniture company winds down its operations in a market to which it hopes one day to return.

"From July 5 for a few weeks you can buy IKEA goods only on ikea.ru," IKEA said on its Russian website. "Goods will be on sale for as long as they are in stock."

It was not possible to add items to the online basket as of 12:30 p.m. in Moscow (0930 GMT).

"For technical reasons, accepting orders through the basket on the website is temporarily unavailable," IKEA said on its website. "We are working on solving the problem."

IKEA took down an earlier message that read: "At the moment we are processing received orders manually."

Selling surplus inventory and generating revenue in Russia may raise eyebrows, given the public and political pressure on companies not to do business there.

IKEA still operates 14 malls in the country under the MEGA brand, though it said it is exploring options for its 17 furniture stores there which remain closed.

Scores of companies have suspended operations in Russia since Moscow sent tens of thousands of troops into Ukraine in late February in what it terms a "special operation".

However fewer than 40, including McDonald's, Societe Generale (EPA:SOGN) and Renault (EPA:RENA), have announced deals to sell assets or hand the keys over to local managers.

IKEA said last month it would sell factories, close offices and reduce its 15,000-strong workforce in the country as it did not expect to resume sales in the foreseeable future.

Its owner Ingka Group said in June it was open to returning to Russia one day, but that conditions were not in place right now.

IKEA has said it will continue to pay its nearly 15,000 staff in Russia until the end of August.

Footage obtained by the Baza Telegram channel last week showed people sprinting through an IKEA store as employees were permitted to return and use their 15% discount.

IKEA reopens for online fire sale in Russia before market exit
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email