Amid Russia’s invasion of Ukraine, IKEA, the world’s largest furniture retailer, decided to shut down all of its shops in Russia and halted all manufacturing in Russia and Belarus. But now, IKEA wants to return.
IKEA and Inditex, which oversees the brands Zara, Massimo Dutti, Oysho, Bershka, Stradivarius, Pull & Bear, Zara Home, and Uterque, according to Deputy Minister of Industry and Trade Viktor Yevtukhov, would like to come back to Russia.
AttN: @IKEA is looking to reopen stores in Russia after adjusting supply chain logistics to ensure a full range of products
This was reported by the Deputy Head of the Ministry of Industry and Trade of the Russian Federation Viktor Evtukhov.
— Anonymous Operations (@AnonOpsSE) April 21, 2022
According to the official, companies must develop distribution network logistics to assure their complete range of products. IKEA, in particular, manufactures only a portion of its products in Russia and imports the remaining.
Trade Viktor Yevtukhov said that IKEA has a heavy reputation in Russia. They must fill the assortment matrix, which is becoming increasingly challenging. It will open after the company has found a way out.
He pointed out that IKEA established its Russian stores and factory, so it would be “inefficient” to “throw” everything away.
The official noted that foreign enterprises that temporarily halted operations in the Russian Federation, whose activities are monitored by the Ministry of Industry and Trade, cited supply issues rather than the commencement of the war in Ukraine as the reason for their decision.
Viktor Evtukhov explained that they intend to resume operations as soon as possible. They do not wish to leave due to the size of the Russian market. Inditex is in the same position.
Inditex Garcia Maceiras, the business’s CEO, stated on April 20 that the business will come back to Russia if the opportunity comes up. IKEA has yet to make a similar announcement.
