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Bloomberg
Swedish home-furnishings giant Ikea gave a bleak outlook for the retail industry, saying it expects shortages from the supply-chain crisis to remain an issue through the middle of next year.
“The biggest challenge has been getting products out of China, where there has been a very limited capacity,†Chief Executive Officer Jon Abrahamsson Ring of Inter Ikea, the worldwide franchiser for the brand, said in an interview.
Shortages of transport containers and blocked-up ports have snarled logistics for retailers around the world. The turmoil has led to warnings about slower sales growth and higher costs at companies from Hennes & Mauritz AB to UK online retailer Asos Plc.
To cope with the situation, Ikea had to prioritise and focus its product offering on the most popular products, Abrahamsson Ring said.
“I don’t think we will be out of the woods†during the current fiscal year, the CEO said. That period runs through next August.