Ikea to widen range after stock ‘returns to pre-pandemic levels’

Stock levels at Ikea have returned to normal for the first time since the start of the pandemic, according to a report by Reuters.

It said that supply chain disruptions over the past couple of years have driven the furniture retailer to cut down its range, lease more ships, buy containers, and re-route goods.

Earlier this year, Ikea announced it would hike its UK prices due to supply chain issues.

In January, a spokesperson from the company said that although Ikea had managed to absorb significant cost increases experienced across the supply chain since the start of the pandemic, it has had to raise its prices to mitigate the impact of Covid-19 on the business.

"If you look at Europe our stores are back at the same inventory levels as we were 2019,” Tolga Oncu, retail manager at Ingka Group told Reuters on Thursday during the opening of its first inner-city store in Stockholm. “This has happened just recently.

"And now is the time to again start widening the range.”

Ikea is spending €3 billion in the next year on new and existing stores around the world, with a large chunk of the cash going on turning its huge trademark out-of-town stores into e-commerce fulfilment centres.

In February, following the opening of its first small store in Hammersmith, Ikea announced that it will invest £1 billion in London over the next three years.

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