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Now IKEA hits choppy waters


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)

binman1234 says...
1:17pm Wed 8 Jul 09

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

peachy1 says...
1:44pm Wed 8 Jul 09

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 apart
GOOD 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...
2:14pm Wed 8 Jul 09

peachy1 wrote:
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 apart
GOOD 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
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)

Miles Way says...
2:16pm Wed 8 Jul 09

peachy1 wrote:
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 apart
GOOD 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
First - read the story, Ikea globally and mainly manufacturing & logisitics, not Southampton secifically.
From experience Ikea provide well priced decent furniture - I've bought it and would do so again, the stuff I had was well made, certainly not shoddy & it didn't fall apart (maybe binman1234 can't follow assembly instructions - that'd be Ikea's fault eh?)
And why hope they go bust? they're popular with a lot of people who obviously don't agree with you; they're also in business to make profit, nothing wrong as far as I can see or are you another member of Southy's new world utopia where no company exists for profit?

Nearly an OAP says...
2:28pm Wed 8 Jul 09

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...
2:29pm Wed 8 Jul 09

Nearly an OAP wrote:
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.
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

stmarysmush, literally, says...
2:30pm Wed 8 Jul 09

Actually, Sainsburys don't refund, they issue parking exit tokens, which won't work in a pay/display car park will it? Doh!

Scratch that

peachy1 says...
2:40pm Wed 8 Jul 09

stmarysmush, literally, wrote:
peachy1 wrote:
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 apart
GOOD 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
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)
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

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


Common business practice, unfortunate though it may be.

the store is a shambles you have to start at the top and HAVE to walk a certian route.


Does not reconcile with your "in it for the money" claim. The opposite, if anything.

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


You are, presumably, a sole trader or run a small private company. With a large corporation, they are by definition faceless, ergo, who would be "killed"?

The IKEA site was built from eurpoean funding and hardly cost IKEA


If the funding was there, why shouldn't they take it? You would, if funding was available. Common business practice, not unique to IKEA.

they are a disgrace and i will never buy anything from them they stand for capatilism and they smell


You yourself are in business. Ergo, you stand for capitalism. What line of business are you in, so we Comrades can boycott your capitalist pig-dog evil corporation?

Seems that you now have to boycott pretty much all corporations, according to your own rules as outlined above. Good luck with that, looking forward to Richard Briers playing you in a sitcom soon

Miles Way says...
2:51pm Wed 8 Jul 09

peachy1 wrote:
stmarysmush, literally, wrote:
peachy1 wrote:
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 apart
GOOD 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
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)
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
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.

Nod says...
2:53pm Wed 8 Jul 09

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 apart
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.

and best of all the stuff is cheap.

stmarysmush, literally, says...
2:53pm Wed 8 Jul 09

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!

goard says...
3:00pm Wed 8 Jul 09

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

Miles Way says...
3:02pm Wed 8 Jul 09

stmarysmush, literally, wrote:
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!
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..

stmarysmush, literally, says...
3:08pm Wed 8 Jul 09

Miles Way wrote:
stmarysmush, literally, wrote:
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!
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 have half-a-hunch that southy's spelling is an affectation, a red herring to keep us off the scent of his sock puppets.

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...
3:20pm Wed 8 Jul 09

stmarysmush, literally, wrote:
Miles Way wrote:
stmarysmush, literally, wrote:
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!
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 have half-a-hunch that southy's spelling is an affectation, a red herring to keep us off the scent of his sock puppets.

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.

a true "Southyfact" is something known only by Southy himself, and once stated cannot be questioned or denied, even when said "Southyfact" takes a contrary position to all documented information known/understood/bel
ieved by the rest of the world.
Furthermore "Southyfacts" require no proof other than Southy stating them to be true and any specific questions on their veracity may be glossed over and ignored at Southy's discretion.
Be dull without him though.

Miles Way says...
3:25pm Wed 8 Jul 09

goard wrote:
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
Do Ikea only offer excellent stuff to pensioners and young mums, and something else to the well off then Goard?
Discrimination at it's worst.

Militant Ford Worker says...
4:44pm Wed 8 Jul 09

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?

stmarysmush, literally, says...
4:50pm Wed 8 Jul 09

Militant Ford Worker wrote:
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?
LOL yeh I think it was. Another face-egg and footbullet for Smith

mercrocker says...
6:38pm Wed 8 Jul 09

Good riddance to the chipboard Swedish crap. My only concern is with the folk who are employed by such flash-in-the-pan bloodsuckers. And while you are at it paint the damned ferry its proper colour again. Pikea is just one more money-grabbing corporate raptor that Southampton council rolled over for.....

Stubs says...
9:28pm Wed 8 Jul 09

There are no jobs anywhere.

Condor Man says...
10:24pm Wed 8 Jul 09

IKEA brings in people to the city who'd otherwise be spending their money in other places (like Skatesville), so it's a good thing to have.

pinklady says...
9:30am Thu 9 Jul 09

Militant Ford Worker wrote:
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?
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!!

bigboybarry says...
10:05am Thu 9 Jul 09

i went to ikea had a brekkie bit dried up but not bad for £1.80,then ihad a walk around the store got lost had to get a map,i found quite a comfy rocking chair for 80 quid so noted the location to find it on another floor took about half hour to get there,found it was out of stock in the colour i wanted so had to get a different colour one which meant i had to go back to the top floor to find the location for that one,half hour later with my flat pack chair in the trolley i checked out and waited 10 minutes for a lift that wasnt packed with push chairs to get back up to my car ,total shop time 2 hours 15 minutes.Now this chair was easy to put together and was described as being able to support 170 kilos and guaranteed for 2 years.I cut up the box and put in my blue bin.Everything was fine for 2 days until iwas happily sat there rocking away to eastenders then CRACK!!! the back gave way and i ended up on the floor.I went to the store next day all the way to the top and was told the returns department was on the bottom floor so half hour later i got there and they said i could return it if i had the original packaging!! yeah cos i wqnt my flat full of empty boxes dont i .Now im stuck with an 80 quid piece of broken wood,the whole ikea experience is a complete joke and they will never see me again,its true in life when they sa you get what you pay for.

southy says...
11:55am Thu 9 Jul 09

stmarysmush, literally, wrote:
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!
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.

parcel says...
12:46pm Mon 13 Jul 09

Well,
Personally I have had no problems apart from "failing to understand" a diagram to put a drawer unit (for someone) together correctly, yes it was possible and the man in IKEA Bristol showed me how.

What a nice man.
I hav bought items from them, no probs.

The stores are excelent and u can pick up some real bargains, not only that, they also serve some nice "nosh" as well!


Ikea Southampton Now IKEA hits choppy waters

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