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Ikea

Ikea faces disruption to 1,000 UK product lines

On this episode of Talking Shop, we're joined by Dan Cate, CEO and Founder of SoldThrough. Dan is a heavyweight retail executive who has spent decades steering the merchandising and digital operations of America’s most iconic retail institutions, from Saks Fifth Avenue and Bloomingdale’s to Century 21 and Lord & Taylor. Today, through his platform SoldThrough, Dan helps international fashion brands cross the Atlantic and crack the notoriously brutal U.S. retail landscape. We break down his journey from the shop floor to the C-suite, the operational indicators that prove a brand is truly ready for international expansion, and how to navigate a fragmented American market without destroying your margins. We also discuss how to balance localised inventory with central efficiency, and the one non-negotiable metric that tells you a product has found genuine market fit.

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Ikea is reportedly facing issues with supplying roughly 1,000 product lines to UK customers as a result of Brexit and the lorry driver shortage.

According to The Independent, all 22 of the multinational retailer’s UK sites are experiencing disruptions, with some outlets reportedly running out of mattresses and other items.

Some 10% of all products are supposedly impacted by the shortages, which are having an impact across numerous industries throughout the UK.

A spokesperson told Retail Sector: “Like many retailers, we are experiencing ongoing challenges with our supply chains due to Covid-19 and labour shortages, with transport, raw materials and sourcing all impacted.

“In addition, we are seeing higher customer demand as more people are spending more time at home. As a result, we are experiencing low availability in some of our ranges, including mattresses.”

Ikea’s supply chain disruption is just one example of many, leading the UK Trade and Business Commission to host a hearing on the causes of the current HGV driver shortages.

During the hearing, government was urged to “get a handle” of the “immediate and systemic” problems occurring across the country.

Aodhán Connolly, director of the Northern Ireland Retail Consortium, who chaired the hearing, told the Guardian: “The witnesses painted a pretty stark picture for the months ahead unless the Government acts quickly. They made it quite clear that red tape and labour shortages from Brexit have exacerbated problems that are being acutely felt across production, processing, manufacturing, retail and of course logistics.

“The government needs to get a handle on this both in the short and long term and we will be making recommendations based on the evidence we heard today.”

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