ZF English

IKEA: We buy too little furniture from Romania

IKEA: We buy too little furniture from Romania

In its first 6 months, the IKEA store registered sales worth 40m euros, 75% above initial expectations

11.01.2008, 18:54 15

IKEA, the world's largest furniture retailer, boosted the volume of furniture purchased from Romania by over 20% in 2007, and estimates to maintain the same rate in 2008.
"From the domestic market we mainly acquire large items made from solid wood and estimated a 20% advanced in 2007. Nevertheless, we are buying too few products domestically," stated Hendrik Notmeijer, trading area manager with IKEA Trading Und Design, the procurement unit of the Swedish giant.
Notmeijer chose not to reveal the value of furniture bought from Romanian suppliers; however, according to the latest data available, IKEA acquires items worth over 250m euros from domestic producers.
IKEA Trading operates separately from the store, which opened domestically last spring. At present, the group's number of suppliers revolves around 40 companies. The list of companies that deliver products to the Swedish company includes Sortilemn Gherla, Plimob (Maramures), Ecolor (Cluj) and Nikmob (Buzau).
"The launch of IKEA in Romania last year had no impact whatsoever on the number of suppliers the company works with. We buy from these suppliers for all the markets where IKEA is present. The opening of one or two IKEA stores has no influence on our global requirements. Still, we are open to all possibilities and should we find new companies, we won't say no," Notmeijer added.
Romanian producers working with IKEA deliver almost exclusively to the Swedish-based giant.
Concerning the new IKEA store, from the 7,000 items on display only 10% come from domestic companies. The main products IKEA acquires from Romanian firms are large items made from solid wood, upholstery and ceramic objects.
Separately from its office, IKEA also owns its own production facility, Swedwood, which is based in Siret.
Nevertheless, the Swedish group's most visible "unit" domestically is the store it opened last spring in the Baneasa commercial area of Bucharest. Investments in the unit are estimated at 25m euros and will be recouped over 4 years. In its first 6 months, the store registered sales worth 40m euros, 75% above initial expectations. As a result, the company raised its revenue target to 80m euros (for August 2008). In addition, there are plans to open further IKEA stores this year, with 6 stores planned across Romania in six years.

Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels

AFACERI DE LA ZERO