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Top IKEA franchisee cautions in Davos that tariffs could drive prices higher

For budget furniture seller IKEA, the fewer trade tariffs there are the much better, the CEO of Ingka Group, the biggest global IKEA franchisee, informed Reuters in Davos on Monday as companies brace for higher U.S. tariffs under President Donald Trump.

We, and I think probably all global companies flourish from harmonised tariffs, if you like, and really, the less the much better since at the end of the day there is a threat in any country with tariffs that you need to, as a company, pass it on to the customers, stated Jesper Brodin, speaking on the sidelines of the World Economic Forum (WEF) annual conference in Davos, Switzerland.

Inflation and high rates of interest have had a destructive. influence on consumers over the previous few years, Brodin stated, including. that he sees need improving.

We are rather optimistic about the outlook and we. already see a shift where people are going back to, I would state,. a normal scenario when it comes to consumption, he stated.

Ingka Group, which runs IKEA shops in 31 nations and. represent 90% of international IKEA sales, reported a drop in yearly. net earnings and sales last year after cutting costs in an. effort to coax inflation-weary consumers back to its huge blue. stores.

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(source: Reuters)