Swedish IKEA To Temporarily Halt Sales In Russia Due To Huge Demand

Posted: December 19, 2014 in Econ 101, Sanctions on Russia Meaningless

SOURCE: http://www.thelocal.se/20141219/ikea-packs-up-furniture-sales-in-russia

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Ikea packs up furniture sales in Russia

Ikea packs up furniture sales in Russia

Shoppers in Russia have been snapping up cut-price deals as the value of the country’s currency has made consumer goods cheaper. In the wake of the crisis Ikea had been flooded with orders, but is now calling a halt on sales on a range of its items.

“IKEA Russia is temporarily stopping sales of kitchen furniture and appliances due to a large number of customer orders. Sales of kitchen furniture and appliances will be resumed starting Saturday, Dec. 20,” the company said in a statement.

Several business media outlets have stated that the price of Ikea goods in Russia have sank by as much as 50 percent. For instance the popular ‘Billy’ bookcase, which isn’t on the suspended list, is now retailing for as little as $30 after previously being sold for $62.

Several companies have been savvy to the currency drop and altered their prices as a result.

Ikea’s decision follows hot on the heels of the move made by Apple to close its popular online store citing “extreme fluctuations” in relation to the value of the rouble.

The Swedish giant has warned that prices are expected to rise when sales resume in Russia.

“Also, prices on the site are currently being updated, therefore they may differ from prices in stores,” the company said in a statement.

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