Delft, The Netherlands — Ingka Group, majority holder of Top 15 home textiles retailer Ikea, announced that it will continue to pay its Russian staff through August, according to a report by Reuters.
In March, Ikea announced that it was halting operations in the country after it invaded Ukraine. In making the announcement, it noted that it would pay staff in rubles through May. That payment structure has been extended.
“We have managed to prolong that to six months,” Tolga Oncu at Ingka Group told Reuters in an interview. “We keep monitoring, analyzing, looking at what’s happening and will make decisions as we go forward.”
Oncu told Reuters that payments for local wages will come from the utilization of assets Ingka has within Russia.
Reuters notes that Ingka Group has 17 stores in Russia and one distribution center. In its latest fiscal year, Russia was its 10th-biggest market with retail sales of 1.6 billion euros, or 4% of total retail sales.
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Thomas Lester is Retail Editor for Furniture Today and Digital/Managing Editor for Home Accents Today. A graduate of Emory & Henry College's Mass Communications program, Lester spent a dozen years working for newspapers in Virginia and North Carolina covering an array of subjects, ranging from community news, government, education, ACC sports, professional baseball and more before joining Furniture Today in 2013. Reach out to me with your story ideas, tips and more at [email protected].
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