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IKEA Russia new strategy to focus on existing stores
Sweden-based home furnishings retailer IKEA is changing its strategy in Russia to focus on existing stores rather than expansion to more sites, its new CEO for Russia Per Wendschlag has said.
No new sites will be opened in the next three to five years, and instead the retailer will pay more attention to current tenants and to upgrading and expanding the facilities. Investment will continue, Wendschlag said, but it will be funneled "into other things". He said: "We will take a break and work with what we have.”
Yesterday, Wendshlag admitted IKEA had “made mistakes” in Russia, after the retailer was forced to delay the opening of a new store due to safety concerns and local corruption. In February IKEA sacked two executives for ignoring bribery by a St Petersburg subcontractor.
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