IKEA has been stepping up its production of goods in Russia and now plans to ramp up capacity. In spring 2015, IKEA confirmed its plans to invest an additional $2 billion in Russia by 2020. The company sees Russia as one of its primary markets for growth and development and intends to export more Russian-made goods. The company owns four factories in Russia in the Moscow, Leningrad, Novgorod, and Kirov regions. IKEA is building another factory in the Novgorod region. The furniture retailer is spending $50 million on the factory which it plans to open next year.
The next IKEA store in Russia is planned to open in 2018 in the Mytishchi district of Moscow. The retailer now has 14 stores in the country. Unlike other Western manufacturers in Russia who were hit by the ruble depreciation and weaker consumer demand, IKEA’s sales in the country grew 14.7% last year. “About 60 percent of products on sale are made in Russia. This share has been increasing gradually, year after year. Two years ago, the localization was about 50 percent”, said a spokesman for IKEA.
