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Adverse movements in exchange rates affected the price of the products as well as the cost to make the products. IKEA also addressed this issue by sourcing approximately 45% of their products locally, which makes it less vulnerable to these adverse exchange rate movements.
By 2000, about 1/3 of IKEA's total products were designed exclusively for the U.S. market, which means the changes IKEA made are proving to be profitable. In 2000, IKEA's North American sales reached $1.38 billion, and they claim they have been making a profit in North American since 1993.
Currently, IKEA operates 25 stores in the United States and the U...
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