Ikea is shutting down its only furniture factory in the United States.
The Swedish company will end production this December at its plant in Danville, Virginia. Operations will move to Europe, where the company says it can cut costs.
Ikea pointed to raw material prices, which it said are higher in the United States than Europe.
A recent shift in Ikea's retail strategy to adapt to the growth of online shopping has led to job cuts in other parts of the business.
The company has been investing in online pickup services and digital fulfillment centers, and in 2017 bought TaskRabbit, an online marketplace for finding gig workers. It's also been opening smaller stores in big cities to attract younger shoppers.
A recent shift in Ikea's retail strategy to adapt to the growth of online shopping has led to job cuts in other parts of the business.
The company has been investing in online pickup services and digital fulfillment centers, and in 2017 bought TaskRabbit, an online marketplace for finding gig workers. It's also been opening smaller stores in big cities to attract younger shoppers.
No comments:
Post a Comment