Supply Chain Research

Ikea is looking to evolve its business to increase the proportion of services in its revenues, partly to preempt slowing growth. There’s little evidence of that so far with its U.S. imports having climbed 11% in the three months to May 31 vs. U.S. furniture retail sales which grew 5% in the three months to April 30. Notably Ikea has reduced its exposure to Chinese suppliers whose shipments only expanded by 3% in the May period. That may be a defensive move even though the U.S. government has yet to threaten Chinese furniture exports with duties. Expansion into emerging markets is another...