IKEA, with U.S. headquarters in Conshohocken, is facing at least another year of stock shortages due to the ongoing supply chain bottleneck, according to a staff report from PYMNTS.com.
“We actually foresee that the availability and raw materials challenge will continue for the better part, if not the whole, of [the financial year to the end of August],” said Jon Abrahamsson Ring, chief executive of Inter IKEA, owner of the IKEA brand. “This is here for a longer period than we thought of at the beginning of the crisis.”
The pandemic has forced IKEA to accelerate its business plans, which resulted in a six percent increase in sales through the end of August.
The company reported a record level of almost $48.6 billion in sales and nearly doubled online sales compared with the previous year.
IKEA’s eCommerce accounted for around 30 percent of its overall sales, compared to 18 percent in 2020 and 7 percent two years ago.
In addition, the company kicked off a pilot furniture buyback and resale program in Conshohocken in August, where loyalty customers can trade gently used IKEA furniture for store credit. The program ran until September 19 in Montgomery County and will be rolled out at other stores.
Read more about IKEA’s supply chain issues at PYMNTS.com.