The Strategist

IKEA warns of shortages in its shops by mid-2022

10/15/2021 - 06:44

IKEA announced shortages in its shops until mid-2022. Crisis in supplies from China is forcing the company to focus on sales of only the most popular items.

Swedish home goods maker IKEA has warned of shortages in its shops until mid-2022 due to a crisis in its supply chain. "The biggest problem is shipping products from China, where there have been very limited opportunities," Inter IKEA chief executive J. Abrahamsson Ring told Bloomberg in an interview.

A shortage of shipping containers and blocked ports have made it difficult for retailers around the globe to deliver goods. To cope with the situation, Abrahamsson Ring said, the company has been forced to focus on supplying only the most popular items to shops. "I don't think we will get out of the thick of it in the current financial year. This period will last until August next year," he said.

Abrahamsson Ring assured that the company was taking measures to get products to its shops, including renting containers and seeking alternative supply routes.

IKEA Turkey CFO Kerim Nisel earlier told Reuters that the company may move some production to the country to minimise problems with global supply chains. The plan is to produce in Turkey for export to other countries, including armchairs, bookcases, kitchen cabinets and wardrobes, which are now supplied to Middle East and European markets from East Asia. "It may not be the best strategy to produce goods in one country and then try to ship them around the world," Nisel admitted.