IKEA to raise prices at Russia stores due to ruble devaluation, rising costs
MOSCOW. Dec 2 (Interfax) - Swedish home furnishings giant IKEA expects to raise retail prices at its stores in Russia owing to the ruble devaluation and rising costs for materials.
"Our operations cannot but be affected by external factors, even though products made in Russia account for over 60% of sales at IKEA stores," IKEA's Russian division said in a statement.
The price increases will be driven by the significant change in the ruble exchange rate, rising prices for the materials used in furniture making and higher transportation costs. Those factors "are having a perceptible effect on the company's financial results."
Despite higher prices, all of the good categories at IKEA stores will offer the "best prices on the market," the statement said. "We are doing everything possible so that these unavoidable changes have a minimal effect on our customers," it says.
The company is currently drawing up a new price policy.
IKEA has 14 Meta retail centers in Russia and 14 IKEA stores.
Russian-registered Ikea Dom LLC boosted revenue 15.7% to 80.48 billion rubles in 2013, according to the SPARK-Interfax database.