IKEA to boost output of Russian-made goods

IKEA to boost output of Russian-made goods

Published at: 2016-04-11 04:53 | Author: CIJ Russia
IKEA has been stepping up its production of goods in Russia and now plans to ramp up capacity. In spring 2015, IKEA confirmed its plans to invest an additional $2 billion in Russia by 2020. The company sees Russia as one of its primary markets for growth and development and intends to export more Russian-made goods. The company owns four factories in Russia in the Moscow, Leningrad, Novgorod, and Kirov regions. IKEA is building another factory in the Novgorod region. The furniture retailer is spending $50 million on the factory which it plans to open next year.

The next IKEA store in Russia is planned to open in 2018 in the Mytishchi district of Moscow. The retailer now has 14 stores in the country. Unlike other Western manufacturers in Russia who were hit by the ruble depreciation and weaker consumer demand, IKEA’s sales in the country grew 14.7% last year. "About 60 percent of products on sale are made in Russia. This share has been increasing gradually, year after year. Two years ago, the localization was about 50 percent”, said a spokesman for IKEA.

Similar Stories:

JYSK leases 1,320 sqm at Morski Park Handlowy
JYSK has leased 1,320 sqm at Morski Park Handlowy in Gdańsk. Savills is the scheme’s pr  »
JYSK leases 1,320 sqm at Morski Park Handlowy
JYSK has leased 1,320 sqm at Morski Park Handlowy in Gdańsk. Savills is the scheme’s pr  »
Tesco selling off Pardubice department store
Tesco is selling off its department store in Pardubice, its last in the Czech Republic. Th  »
Pevec  to open shopping center in eastern Croatia
Pevec bought the former Super Konzum facility in Slavonski Brod, eastern Croatia, near the  »
When it comes to the development of smartphone apps for the retail sector, most of the act   »
Rumors that Tesco is on the way out of Poland are certainly nothing new, but another Briti   »
You’ve been expanding your portfolio as quickly as possible. How are you using the incre   »
In a deal that’s reportedly still being finalized, Jeronimo Martins and Auchan will take   »