The reason for the drop in sales by about three quarters of a billion is mainly the forced six-month closure of four large department stores in Prague, Brno and Ostrava, the company said. For the same reason, the share of online sales increased by more than a quarter, to almost forty percent. In critical phases, the company processed up to 30,000 orders a week, with many customers complaining about difficulties in timely processing.
Regardless of the mandatory closure of department stores, IKEA has not been able to offer customers hundreds of products that have been missing due to disrupted supply chains and are still missing not only in Czech department stores.
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“The disruption of the chains will continue this year, but their condition is gradually improving. However, we have reached a point where we need to increase prices. In the Czech Republic, they will correspond to IKEA’s global price increase by an average of around nine percent, “McCabe told the E15 daily.
One solution to the lingering crisis is to increase the share of local production. It is still dominated by China, where about every fourth IKEA product is created. This is also the reason why some European or American shelves are empty.
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Goods from Asia on ships either did not leave at all or were delayed on the way or in port. “The increase in the share of local production applies especially to Europe,” emphasized the manager, who has been responsible for the Czech, Slovak and Hungarian markets since last September.
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Several major changes that IKEA is preparing on the Czech market will come this year. One of them will be the launch of an e-shop with used furniture. On the Ikea.cz website, customers will be able to find out what used goods are available, at what price and in which specific department store. They will be able to book, pay and collect goods in department stores.
The mobile application will see a similar extension. With its help, customers scan goods in department stores and pay straight away. IKEA promises to shorten the queues at the box office. He will first test the novelty on visitors to the Brno store, then extend it to the remaining department stores.
IKEA also wants to strengthen its presence in the regions. It will open smaller, so-called pop-up kiosks in as yet unspecified regional cities outside Prague. “Our experts will help customers with interior planning,” McCabe explained. The company thus follows up on last year’s opening of the first planning studio in Prague in Chodov.
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The transformation of the vehicle fleet will also be a significant change. IKEA will start building its first fleet of electric cars. Initially, dozens of deliveries will be operated by its main logistics partner, Hral.
“Delivery of goods to customers and transport of customers to department stores account for nine percent of our climate footprint. That’s why he has Ingka (owner of most IKEA stores – editor’s note) a commitment to offer 100% delivery of goods either by electric cars or hydrogen cars by 2025. We would like to meet this commitment in the Czech Republic as well, ”said Barbora Geršlová, Sustainability Manager of the Czech IKEA Division. Next year, electric cars are to participate in the supply of one quarter of goods. At the same time, there will be more charging stations at IKEA stores.
Last year, the company invested 280 million crowns in key projects to improve the customer experience and increased employees’ salaries by an average of five percent. She did not state the amount of profit or loss.
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