CFO Martin van Dam says 2021 will be more challenging amid inflation in raw material prices and supply-chain crisis
People shop at the warehouse section of an Ikea store on the outskirts of Stockholm, Sweden, September 9 2021. Picture: REUTERS/ANNA RINGSTROM
Inter Ikea, the worldwide franchiser for the brand, said on Wednesday that net income fell 17% to €1.43bn in the 12 months through August. “Supply-chain disruption creates by its definition a disappointed consumer,” the CFO said in an interview. The company forecasts sales will increase this year, though at a slower rate than in the past.
Inter Ikea already gave a bleak outlook for the retail industry in October, saying it expects shortages from the supply-chain crisis to remain an issue until the middle of 2022. Franchisees are increasingly testing smaller formats to add click-and-collect sites as consumers order more online, Van Dam said.
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