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12:02pm Wednesday 8th July 2009 in
WORKERS at the giant new Ikea store in Southampton are today concerned for their future after the billionaire founder of the company warned of job losses.
The Swedish flat-pack furniture retailer, which opened in Southampton to great fanfare in February, recently shed 5,000 jobs as a result of the recession.
But Ingvar Kamprad, who founded Ikea in 1943 and still advises the company, says that is not enough to bring the company into line with declining sales.
“We need to decrease the number of staff further, particularly within manufacturing and logistics,” Kamprad told Swedish media. “It’s both about adjusting to sales being a lot less than budgeted, and about becoming more efficient.”
Kamprad, who has a personal fortune estimated at £22 billion, revealed sales at Ikea, which is owned by a charitable foundation he heads, are currently running around 7 per cent below target.
IKEA’S traditional programme of around 20 store openings a year may also be a victim.
“The forecast is that our margins and profits are decreasing substantially this year,” he said. “This is proof that we have been too negligent in how we take care of our existing stores. Actually, I have long tried to warn about our excessive focus on expansion, and now the board has also decided to hit the brakes.”
The West Quay Road IKEA Store, which cost £80m to build, employs 500 people.
An IKEA spokesperson declined to discuss the implications for individual stores.
She said: “Ingvar has been talking about the IKEA business from a global perspective. The UK was among one of the first economies to feel the affect of the global downturn and recently IKEA UK has taken steps to adjust to tougher trading conditions.
“All parts of the IKEA UK business continue to look at ways to become more efficient and at the same time attract more customers.”
Comments(26)
peachy1
says...
1:44pm Wed 8 Jul 09
binman1234 wrote:GOOD I hope they go bust no disprespect to the people who work there but IKEA are a bunch of money grabbing "£%$&&
my word no wounder hve you tryed shoping in the southampton store its total bedlum notr supprised no one wants to go there ps the goods are shoddy and fall apart
stmarysmush, literally,
says...
2:14pm Wed 8 Jul 09
peachy1 wrote:Corporation In "Only In It For The Money" Shocker!
binman1234 wrote:GOOD I hope they go bust no disprespect to the people who work there but IKEA are a bunch of money grabbing "£%$&&
my word no wounder hve you tryed shoping in the southampton store its total bedlum notr supprised no one wants to go there ps the goods are shoddy and fall apart
turn it into a night club
Miles Way
says...
2:16pm Wed 8 Jul 09
peachy1 wrote:First - read the story, Ikea globally and mainly manufacturing & logisitics, not Southampton secifically.
binman1234 wrote:GOOD I hope they go bust no disprespect to the people who work there but IKEA are a bunch of money grabbing "£%$&&
my word no wounder hve you tryed shoping in the southampton store its total bedlum notr supprised no one wants to go there ps the goods are shoddy and fall apart
turn it into a night club
Nearly an OAP
says...
2:28pm Wed 8 Jul 09
stmarysmush, literally,
says...
2:29pm Wed 8 Jul 09
Nearly an OAP wrote:Not sure they'd help. You'd just get people using the car park for free, and not shopping there. Maybe IKEA can help this by refunding paying customers' parking, like Sainsbury's in Eastleigh do for example
Nothing wrong with IKEA products -- a lot better than that rubbish that MFI used to sell. On a local note perhaps the Council would like to scrap the charges of IKEA's car park to help them a little. No, I thought not.
stmarysmush, literally,
says...
2:30pm Wed 8 Jul 09
peachy1
says...
2:40pm Wed 8 Jul 09
stmarysmush, literally, wrote:IKEA were responsible for at least 15 local businesses running into trouble because they were owed money for 200 days plus on work that was doen on building IKEA the store is a shambles you have to start at the top and HAVE to walk a certian route.
peachy1 wrote:Corporation In "Only In It For The Money" Shocker! Yeh, let's all hope that all corporations who are interested in profit go bust. That'll sort everything out. Um (please, Southy, don't even bother responding here)binman1234 wrote: my word no wounder hve you tryed shoping in the southampton store its total bedlum notr supprised no one wants to go there ps the goods are shoddy and fall apartGOOD I hope they go bust no disprespect to the people who work there but IKEA are a bunch of money grabbing "£%$&& turn it into a night club
stmarysmush, literally,
says...
2:49pm Wed 8 Jul 09
IKEA were responsible for at least 15 local businesses running into trouble because they were owed money for 200 days plus on work that was doen on building IKEA
the store is a shambles you have to start at the top and HAVE to walk a certian route.
I am in business to make a profit but if i did what they did to many one man bands and self employed workman then my health would suffer due to people trying to kill me
The IKEA site was built from eurpoean funding and hardly cost IKEA
they are a disgrace and i will never buy anything from them they stand for capatilism and they smell
Miles Way
says...
2:51pm Wed 8 Jul 09
peachy1 wrote:Ikea may have trading practices you don't like but in one moment slagging them off as capitalists and in the next saying you're in business to make a profit is somewhat hypocritical.
stmarysmush, literally, wrote:IKEA were responsible for at least 15 local businesses running into trouble because they were owed money for 200 days plus on work that was doen on building IKEA the store is a shambles you have to start at the top and HAVE to walk a certian route.
peachy1 wrote:Corporation In "Only In It For The Money" Shocker! Yeh, let's all hope that all corporations who are interested in profit go bust. That'll sort everything out. Um (please, Southy, don't even bother responding here)binman1234 wrote: my word no wounder hve you tryed shoping in the southampton store its total bedlum notr supprised no one wants to go there ps the goods are shoddy and fall apartGOOD I hope they go bust no disprespect to the people who work there but IKEA are a bunch of money grabbing "£%$&& turn it into a night club
I am in business to make a profit but if i did what they did to many one man bands and self employed workman then my health would suffer due to people trying to kill me
The IKEA site was built from eurpoean funding and hardly cost IKEA they are a disgrace and i will never buy anything from them they stand for capatilism and they smell
Nod
says...
2:53pm Wed 8 Jul 09
binman1234 wrote:I've been buyinig stuff from Ikea for years (from Croydon, Wembley and Bristol before Southampton). Not one Item I have bought has fallen apart, or even broken.
my word no wounder hve you tryed shoping in the southampton store its total bedlum notr supprised no one wants to go there ps the goods are shoddy and fall apart
stmarysmush, literally,
says...
2:53pm Wed 8 Jul 09
goard
says...
3:00pm Wed 8 Jul 09
Miles Way
says...
3:02pm Wed 8 Jul 09
stmarysmush, literally, wrote:Well, if Peachy is owed money I hope Ikea stump up, and he's not based his rhetoric on rumour, though I confess for a minute I thought it was Southy till I noticed the spelling was accurate, there was no mention of a future where no-one needs money, everyone has a job, and capitalist are shackled to stakes below the high water mark at Redbridge..
I think the truth is that Peachy1 is one of the 15+ local businesses owed monies by IKEA. If that's the case, then that sounds like a perfectly sound reason to hate them. No need to dress it up as a hatred of capitalism!
stmarysmush, literally,
says...
3:08pm Wed 8 Jul 09
Miles Way wrote:I have half-a-hunch that southy's spelling is an affectation, a red herring to keep us off the scent of his sock puppets.
stmarysmush, literally, wrote:Well, if Peachy is owed money I hope Ikea stump up, and he's not based his rhetoric on rumour, though I confess for a minute I thought it was Southy till I noticed the spelling was accurate, there was no mention of a future where no-one needs money, everyone has a job, and capitalist are shackled to stakes below the high water mark at Redbridge..
I think the truth is that Peachy1 is one of the 15+ local businesses owed monies by IKEA. If that's the case, then that sounds like a perfectly sound reason to hate them. No need to dress it up as a hatred of capitalism!
Miles Way
says...
3:20pm Wed 8 Jul 09
stmarysmush, literally, wrote:
Miles Way wrote:I have half-a-hunch that southy's spelling is an affectation, a red herring to keep us off the scent of his sock puppets.
stmarysmush, literally, wrote:Well, if Peachy is owed money I hope Ikea stump up, and he's not based his rhetoric on rumour, though I confess for a minute I thought it was Southy till I noticed the spelling was accurate, there was no mention of a future where no-one needs money, everyone has a job, and capitalist are shackled to stakes below the high water mark at Redbridge..
I think the truth is that Peachy1 is one of the 15+ local businesses owed monies by IKEA. If that's the case, then that sounds like a perfectly sound reason to hate them. No need to dress it up as a hatred of capitalism!
Fact: Southy is a tradesman/craftsman of some sort.
Fact: Southy has, in the past, run businesses. Whether he currently does, I don't know.
Fact: Southy believes capitalism is "wrong".
By "Fact" I actually mean "fact, as confirmed by Southy himself" not something I've inferred to be fact, or that I'd like to pretend to be fact.
Miles Way
says...
3:25pm Wed 8 Jul 09
goard wrote:Do Ikea only offer excellent stuff to pensioners and young mums, and something else to the well off then Goard?
For pensioners and young mums IKEA excellent and the products excellent too - unless you are well off! I must admit my family dragged me around and we lost our way. Wish they had a checkout on each floor tho'. I feel sorry for the staff and wish the company luck for the staffs sake.
goard
Militant Ford Worker
says...
4:44pm Wed 8 Jul 09
stmarysmush, literally,
says...
4:50pm Wed 8 Jul 09
Militant Ford Worker wrote:LOL yeh I think it was. Another face-egg and footbullet for Smith
Was really only in February that Councillor Royston Smith was saying that the job situation in Southampton wasn't all that bad and that the loss of 500 well paid manufacturing jobs at Ford was easily offset by Ikea creating 500 low paid jobs selling furniture manufactured in Sweden?
mercrocker
says...
6:38pm Wed 8 Jul 09
Stubs
says...
9:28pm Wed 8 Jul 09
Condor Man
says...
10:24pm Wed 8 Jul 09
pinklady
says...
9:30am Thu 9 Jul 09
Militant Ford Worker wrote:I wouldnt listen to Royston-Smith he wanted the new uniforms for city patrol - from dayglow yellow to black to look more like police and now they are be made reduntant so he can make parking wardens storm-troopers!!
Was really only in February that Councillor Royston Smith was saying that the job situation in Southampton wasn't all that bad and that the loss of 500 well paid manufacturing jobs at Ford was easily offset by Ikea creating 500 low paid jobs selling furniture manufactured in Sweden?
bigboybarry
says...
10:05am Thu 9 Jul 09
southy
says...
11:55am Thu 9 Jul 09
stmarysmush, literally, wrote:sounds like you come across another socialist that has his/her own business. there's more off then out there than you relize, not all business think in a capitlist way there are many think in a socialist way, and not just in the uk, socialism is international and works well with each other, unlike capitlism it might be international they dont work with each other to well, they are endless thinking how can i get that money off that company, asset strip it and then kill it, to be a capitlist you think off your self, and sod the rest, and this is another reason why capitalism is slowly dying world wide. and socialism is growing again. 15 years time this country will be socialist again, its been 30 years since the last socialist government. time to change and change now for the better.
I think the truth is that Peachy1 is one of the 15+ local businesses owed monies by IKEA. If that's the case, then that sounds like a perfectly sound reason to hate them. No need to dress it up as a hatred of capitalism!
parcel
says...
12:46pm Mon 13 Jul 09
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binman1234 says...
1:17pm Wed 8 Jul 09