IKEA was one of the 55,000 companies doing business in the Czech Republic that had to shut its doors on order from the government. It was also one of the companies that applied for and was awarded support from the state budget in order to hold on to its employees. In March, it collected more than CZK 7.7m thanks to the government’s aid package. But when it turned out that its sales had fallen by “just” 50 percent and the company continued to project higher revenues than last year’s CZK 10.7bn, management decided to return the money it had received. “We realized that we’re able to take care of our people on our own,” said CFO Jan Váchal. “There are other companies that need the help more than we do.” The money should arrive back in the account of the Employment Office by the end of June. IKEA managed to cancel its application for support for the month of April in time, so those funds were never sent. The results at IKEA stores, which reopened in the Czech Republic on May 11, have exceeded expectations. Within two weeks, the value of the average basket had reached CZK 2,160, which is a fifth higher than before the pandemic forced shops to close. IKEA stores returned state support from other companies as well, including Belgium, Croatia, Ireland, Portugal, Romania, Serbia, Spain and the USA.
