The white version of the popular Pax wardrobe, the Ekenäset armchair with retro look or Stockholm television cabinet in walnut veneer: these were just a few of the many visible shortcomings in the showroom and self-service warehouse of Ikea Ghent yesterday. Anyone walking through an Ikea store in recent weeks could not miss it: the Swedish furniture giant is not spared the worldwide logistical problems, with a striking number of furniture and home items that are “temporarily unavailable”.
“Supply is currently more difficult than usual, with gaps in the supply here and there,” confirms Julie Stordiau of Ikea Belgium. The cause is by now known: the worldwide container shortage due to a “super high demand”. “As a result, ships are anchored for two to three weeks before they can enter a port. Once the containers are on the quay, there is again a lack of drivers to carry out all those extra transports to our stores – also here in Belgium,” says the spokeswoman.
But there are also production problems. “Because of covid, a number of Asian and European factories were shut down, while we invested massively in our home, and so much more was sold. Not all suppliers have caught up with their stock backlog yet.”
Damn it! Here and there, it still visibly causes sighing and frustration in the Ghent store. “It is already the third time in a month that we are here,” says Sylke Jansen (22). The West Flemish recently moved in with her boyfriend Angelo Claeys (28) in Roeselare. But even after three visits to the well-known furniture giant about 50 kilometers away, the couple could not check off all the items listed. “We still can’t find the coat rack we’re looking for, among other things. While traveling in the Netherlands, we even made a special stop at Ikea. It turned out to be sold out there too.”
In addition to large furniture, everyday products in particular appear to be difficult to find. “Even multiple plugs are not available,” Angelo knows. “I’ll have to go to another store for it. It is a pity, such a plug easily costs three times as much elsewhere.”
Ikea cannot or will not say how many of the 10,000 items are currently out of stock. “The situation varies from day to day, and from branch to branch. It is also not because an article is missing in Ghent that this is also the case in Wilrijk or Zaventem”, according to Stordiau. “It really is a ‘back and forth’ of exhausted and incoming pieces.” The spokeswoman emphasizes that it is often not about the “toppers” among the articles for which the search is fruitless. “With specially chartered ships and extra containers that are purchased, we mainly try to offer products that the customer expects the most. In addition, there is always an alternative for every article.”
The furniture giant’s advice to avoid an unnecessary journey: check in advance on the website whether the item you are looking for is in stock in your local Ikea store. “We update the stock status every few minutes. If the product you are looking for is not in stock, please check other stores or select ‘Notify me’. We will notify you when the product is back in stock.”
Stordiau also does not know how long the deficits in our country will last. “Unfortunately, we do not yet have the crystal ball that knows the answer in our range.” Although a CEO of owner Inter Ikea Group gave in yesterday The Financial Times does indicate that next year may be even more difficult than 2021, and supply problems will persist well into 2022. “In 2022, we will still be looking forward to supply shortages, more expensive raw materials and higher energy prices. That eats into our margins enormously,” said financial director Martin van Dam. Despite record sales brought by the pandemic, the group’s pre-tax profit fell by 16 percent in the broken fiscal year to the end of August, to 1.71 billion euros.
To limit disruptions in the supply chain, the group has already spent 250 million euros, including on the purchase of its own containers and the transport of goods by train instead of by ship. Van Dam acknowledges that due to increased costs, internal price increases for the first time since 2019 will no longer be unavoidable. It has not yet been determined how much of the extra costs Inter Ikea will pass on to its stores – all franchise retailers. Although the customer will not feel the price increases necessary, according to Van Dam: “A lot depends on how much the stores will pass on.”
Ikea Belgium already prides itself on the fact that the current problems have no financial impact for the customer. “The additional costs associated with current production and delivery problems will not be passed on to the customer,” Stordiau guarantees. “We are very busy with the price story. Our motto trying to reach as many customers as possible at the lowest possible price is closely guarded. Recently, even some price reductions were implemented – just check.”
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