XWB
2021-10-15
Oh no
IKEA Struggles to Stock Shelves Amid Supply-Chain Woes
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IKEA has its products in warehouses in most cases, but fewer ways to get them to stores because of transportation strains in many of its biggest markets.</p>\n<p>“In general we are struggling to have the goods in the right place at the right time,” Mr. Öncü said in an interview.</p>\n<p>The U.K., in particular, has suffered for weeks from a lack of truck drivers, including those for gasoline tankers,triggering shortages and long linesat gas stations. IKEA had previously estimated that 10% of items—about 1,000 products among 10,000—weren’t available in the U.K. Mr. Öncü said he couldn’t provide an exact figure for the level of goods unavailable globally, but that the U.K. was typical of the situation elsewhere.</p>\n<p>Still, shortages of items weren’t significantly impacting sales because the company has a big enough range to provide alternatives, Mr. Öncü said. Digital sales for the year grew sharply, as shoppers gravitated to online shopping during the past 18 months of on-again, off-again lockdown and Covid-19 restrictions, more than making up for any lost revenue.</p>\n<p>On Thursday, IKEA said revenue rose by 6.3% to €37.4 billion, equivalent to around $43.4 billion, in the financial year ended Aug. 31. 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IKEA has its products in warehouses in most cases, but fewer ways to get them to stores because of transportation strains in many of its biggest markets.\n“In general we are struggling to have the goods in the right place at the right time,” Mr. Öncü said in an interview.\nThe U.K., in particular, has suffered for weeks from a lack of truck drivers, including those for gasoline tankers,triggering shortages and long linesat gas stations. IKEA had previously estimated that 10% of items—about 1,000 products among 10,000—weren’t available in the U.K. Mr. Öncü said he couldn’t provide an exact figure for the level of goods unavailable globally, but that the U.K. was typical of the situation elsewhere.\nStill, shortages of items weren’t significantly impacting sales because the company has a big enough range to provide alternatives, Mr. Öncü said. Digital sales for the year grew sharply, as shoppers gravitated to online shopping during the past 18 months of on-again, off-again lockdown and Covid-19 restrictions, more than making up for any lost revenue.\nOn Thursday, IKEA said revenue rose by 6.3% to €37.4 billion, equivalent to around $43.4 billion, in the financial year ended Aug. 31. 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