IKEA reopens for online fire sale in Russia before market exit

This content material was produced in Russia the place the regulation restricts protection of Russian navy operations in Ukraine

MOSCOW, July 5 (Reuters) – IKEA will open for enterprise for a last time in Russia on Tuesday, with clients permitted to purchase items in an online-only hearth sale earlier than the Swedish furnishings firm winds down its operations in a market to which it hopes in the future to return.

“From July 5 for a number of weeks you should purchase IKEA items solely on ikea.ru,” IKEA stated on its Russian web site. “Items shall be on sale for so long as they’re in inventory.”

It was not doable so as to add objects to the web basket as of 12:30 p.m. in Moscow (0930 GMT).

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“For technical causes, accepting orders by means of the basket on the web site is briefly unavailable,” IKEA stated on its web site. “We’re engaged on fixing the issue.”

IKEA took down an earlier message that learn: “In the mean time we’re processing acquired orders manually.”

Promoting surplus stock and producing income in Russia might elevate eyebrows, given the general public and political strain on firms to not do enterprise there.

Clients stroll in IKEA retailer, in Moscow, Russia, March 3, 2022. REUTERS/Workers

IKEA nonetheless operates 14 malls within the nation underneath the MEGA model, although it stated it’s exploring choices for its 17 furnishings shops there which stay closed.

Scores of firms have suspended operations in Russia since Moscow despatched tens of 1000’s of troops into Ukraine in late February in what it phrases a “particular operation”.

Nonetheless fewer than 40, together with McDonald’s (MCD.N), Societe Generale (SOGN.PA) and Renault (RENA.PA), have introduced offers to promote belongings or hand the keys over to native managers.

IKEA stated final month it might promote factories, shut workplaces and scale back its 15,000-strong workforce within the nation because it didn’t count on to renew gross sales within the foreseeable future.

Its proprietor Ingka Group stated in June it was open to returning to Russia in the future, however that circumstances weren’t in place proper now.

IKEA has stated it should proceed to pay its practically 15,000 employees in Russia till the top of August.

Footage obtained by the Baza Telegram channel final week confirmed folks sprinting by means of an IKEA retailer as workers have been permitted to return and use their 15% low cost.