The Strategist

IKEA sets to return state aid received during the pandemic

06/15/2020 - 07:15

The Swedish IKEA hypermarket chain has begun negotiations with several governments to return state aid allocated to the company as a support measure in the context of the COVID-19 coronavirus pandemic, the Financial Times (FT) reported. The company explained its decision by saying that the consequences of the temporary closure of its stores were not so catastrophic.

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“Now the most appropriate thing is to say thank you to those who supported us. You supported us in a very difficult period, and we are ready to thank you,” said a retail operations manager at Ingka Group. The Dutch holding company Ingka Group controls most of the IKEA stores.

According to the manager, the company expected a 70–80% reduction in sales due to the closure of its stores. But this did not happen, as soon stores opened, and the demand for household goods only increased.

IKEA began negotiations with the authorities of Belgium, Croatia, Czech Republic, Ireland, Portugal, Romania, Serbia, Spain and the USA. The company has just begun negotiations, and the details of the return of state aid are still unclear.