EconomyThe Swedish giant will pay bonuses totaling 110 million...

The Swedish giant will pay bonuses totaling 110 million euros to its employees

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Ingka, the main store network of Swedish furniture giant Ikea, will pay 110 million euros in bonuses to all its employees for their “extraordinary efforts” during the Covid-19 pandemic, he announced on Friday.

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“The pandemic put us in a situation for which I don’t think any of us were really prepared (…), we went from a mostly offline activity to an online activity in two weeks” group leader Ulrika Biesèrt told AFP. “Our people are the heroes who have reoriented our company to try to serve the customer in the best possible way,” she continued. Ingka operates in 32 markets around the world and employs over 170,000 people.

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The bonus will be distributed across all Ingka markets and for all its employees “employed on August 31, 2021 and still in post on the date of payment in January 2022,” the group said. The overall distribution will depend on the level of wages in each of the markets. This bonus will notably be added to an annual bonus based on the performance of the company.

6.3% increase in turnover

Ingka, which represents around 90% of the turnover of the Swedish furniture giant, has withstood the effects of the Covid-19 crisis rather well, despite a decline in its profits for its annual fiscal year shifted between September 2019 – August 2020. The negative impact of store closings and restrictions was largely offset by additional spending by consumers on furnishing their homes, when the coronavirus resulted in more time spent at home, according to Ingka.

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For its September 2020 – August 2021 fiscal year, the group has already announced in mid-October a 6.3% increase in its turnover, driven by a jump in online commerce. Throughout the year, the franchise says it has “seen an increase in demand for work furniture, outdoor furniture and storage solutions.” This development is a direct consequence of the pandemic and the rise of teleworking. Ingka, which is due to release more detailed results on November 30, expects, however, to suffer from shortages due to supply issues until 2022.

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