International furniture giant IKEA announced that it has resumed selling kitchen appliances and furniture in Russia. Sales were suspended on Thursday, after increased demand proved too much for the company to meet.
On its website, IKEA announced that “Sales of kitchen furniture and appliances are now resumed in all IKEA Russia stores. Prices on the site are currently being updated, therefore they may differ from prices in stores.”
IKEA, along with several other companies, announced price increases in Russia after the ruble fell sharply in value. Apple also suspended sales in the country to keep up with the decreasing currency value, and several car companies, including Jaguar, Audi, Land Rover and General Motors have suspended their shipments as well.
Furniture manufacturing generates about $20 billion a year for the U.S., making it a booming market. But in Russia, where the value of the ruble has plummeted by over 40% in the past year due to falling oil prices and the Ukraine conflict, furniture sellers like IKEA are struggling to adjust prices to reflect the economic conditions.
The impending price hikes have caused a spending panic in Russia, as citizens scramble to pick up valuable goods at lower prices while they’re still available. The sudden dramatic increase in demand forced IKEA to halt kitchen furniture and appliance sales to keep up with orders.
CNN Money points to IKEA’s popular Billy bookshelf as a prime example. The product costs 1,900 rubles on the IKEA website, equivalent to about $30. It cost the equivalent of $62 before the ruble value plummeted, and the same shelf costs $59.99 in the U.S.
Many Russians looking for a deal like this may already be too late, since many retailers have already adjusted their prices. IKEA plans to change prices gradually as it restarts sales starting on Dec. 20. Inflation is expected to push prices even higher, especially for food. McDonald’s prices have already been raised.
So far none of the businesses have pulled out of Russia.