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Ikea is warning of possible shortages of some of its products as shipping companies bypass the Red Sea, one of the world’s busiest trade routes, because of mounting security threats in the region.
A number of major container carriers are diverting shipments from a key waterway that leads to the Suez Canal because of a series of attacks on vessels by Houthi militants from their bases in Yemen, data from freight shipping platform Freightos shows. The Iran-backed Houthis vowed last month to strike ships it suspects of having Israeli ties in a show of support for Hamas, the Gaza-based militia that has been at war with Israel since its Oct. 7 attack on the country.
“The situation in the Suez Canal will result in delays and may cause availability constraints for certain IKEA products,” the Swedish furniture retailer’s parent company, Inter IKEA Group, told CBS MoneyWatch on Thursday.
The company said it is evaluating its options to ensure the availability of its products. Ikea does not own any container vessels, and its transportation partners manage all the company’s shipments, an Inter IKEA Group representative noted.
More than 20 vessels have come under attack in the Red Sea since mid-November, according to Zev Faintuch, a senior intelligence analyst at global security firm Global Guardian. As a result, 19% of freight is now being diverted from the Suez Canal, the shortest trade route between Europe and Asia, according to the Freights Baltic Index.
In recent weeks, shipping giants including CMA CGA, Equinor, Evergreen, Hapag-Lloyd, Maersk, Orient Overseas and ZIM have all said they plan to avoid the Red Sea while the violence persists, and energy company BP said Monday it has suspended gas and oil shipments in the area.
Before the recent flurry of attacks in the region, 12% of global trade passed through the Suez Canal, according to the U.S. Naval Institute.
The diverted shipments will now pass through an alternative route along Africa’s southern tip, adding days or weeks to shippers’ journeys. Shipping costs have jumped 14% since freight carriers moved to reroute around the Suez Canal because of the heightened risk of attacks, according to Freightos data.
“The impact of the trade diversions will be quite dramatic…[resulting in] longer lead times and higher costs until security is restored,” Freightos Chief Marketing Officer Eytan Buchman told CBS MoneyWatch.
Other retailers are also acting to protect their supply chains amid the threat to ships in the Red Sea. For example, clothing retailer Abercrombie & Fitch Co. is planning to shift to air freight to secure its supplies and avoid delays, Bloomberg reported on Thursday.
Meanwhile, efforts to improve security in the region are underway. The U.S. is forming a 10-nation coalition to quell Houthi attacks in the Red Sea, U.S. Secretary of Defense Lloyd J. Austin III said Monday in a statement.
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Chase is targeting some cardholders with a new offer that can save you up to $27 on your purchases at IKEA. Here’s how this IKEA Chase Offer works:
Chase Offers are available on Chase credit cards and debit cards. With these offers, you usually get cashback when you use your eligible Chase card to shop at a participating store. You can see your offers in the Chase app or in your account online. Here are a few things worth noting about these offers:
A nice offer for savings at IKEA. You can use it on one or separate purchases of up to $270, and you can save a maximum of $27. Check your accounts and let me know if you have this offer, or if you see a different version.
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DDG
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![[Targeted] Chase Offers: IKEA, Get 10% Back (Max $27 Cashback) – Doctor Of Credit](https://reportwire.org/wp-content/uploads/2019/07/ikea.png)
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Update 12/13/23: Deal is back through 12/31/23. Hat tip to GC Galore
Update 10/10/23: Available again through 11/18
Update 4/30/23: Deal is back for 10% this time, up to $27, and valid through June, 2023.
Check your Chase Offers for the following deal:
Not a huge discount, but IKEA is always a popular option.
Post history:
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William Charles
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IKEA, the Swedish furniture maker whose products are ubiquitous in apartments the world over, has long prized itself on its “democratic design.” When thinking about a new product, the company’s designers evaluate it on five different dimensions: function, form, quality, sustainability, and low price.
But what happens when IKEA moves to a new market with very different tastes? How does it evaluate form and function for a different kind of home?
Jesper Brodin, CEO of the Ingka Group, which operates the vast majority of IKEA stores worldwide, explained how the retailer adapts its product lineup for local consumers in a recorded interview that aired at Fortune China’s recent China 500 Summit in Shanghai.
Chinese consumers, it turns out, are more concerned with how they use a product, rather than how it looks.
“The adaptations we do…[are] normally on the functional side, not so much on the style side,” Brodin said. “When it comes to functions—how people cook, the stiffness of a mattress, and so forth—people are not prepared to change.” he explained.
IKEA wasn’t always a globe-trotting furniture retailer. The Swedish brand initially exported its products with few changes, leading to some surprising consequences: IKEA’s first American shoppers would buy the retailer’s vases as drinking glasses because European-sized cups were too small for U.S. tastes.
The company now conducts regular home visits to better understand how customers in different markets live their lives. And IKEA tailors its sample room layouts to how people in different countries, or even different sub-national regions, set up their homes.
Back in 2013, Reuters noted that the furniture retailer would show different sample balcony layouts depending on its location in China. Northern Chinese stores would feature a balcony used for food storage, common to the region. Southern Chinese stores, instead, featured a space used for laundry.
IKEA continues to localize its product line-up for China today. IKEA China recently debuted a new lineup of smart lightbulbs, which can be accessed through platforms offered by Xiaomi, the Chinese smartphone manufacturer.
Brodin touched on new technologies in his Fortune China interview.
“When it comes to generative AI, we are in our early days…both on the risks and the opportunities,” he said.
IKEA is dipping its toes into the world of AI. In June, the company announced that it was shifting ordinary customer service requests to a bot named Billie, named after its range of bookcases. Instead of answering basic questions, the company’s human call center workers will provide interior design advice to interested customers—and hopefully drive more sales.
Brodin said that he was making his leadership team go through a “crash course” in AI, in which executives discuss questions like “What is AI? What does it mean for us? And how do we actually bring it back to our leadership?”
“This is something I recommend all companies to do,” he said.
Fortune’s Brainstorm Design conference is returning on Dec. 6 at the MGM Cotai in Macau, China. Panelists and attendees will debate and discuss “Empathy in the Age of AI” or how new technologies are revolutionizing the creative industry.
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Nicholas Gordon
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Both Portal games are always a joy to rediscover, even if you’ve already played them countless times. Portal 2’s co-op campaign, Cooperative Testing Initiative, is no different. It’s a fantastic series of puzzles along five official testing courses, each with its own number of testing chambers, that lose none of the mainline Portal puzzles’ charms. Instead, the sequel’s co-op campaign deftly weaves in two-player gameplay mechanics in increasingly complex ways. Each course focuses on a specific testing mechanic, all seen in Portal 2, but reimagined with co-op play in mind.
Portal is also an excellent choice because it’s so approachable. It doesn’t take too long to get the hang of the movement and physics, so even if your partner (or you!) isn’t a “Gamer,” they can still have a ton of fun with this pickup.
You can play local or online co-op, as well. It’s available on PC and Nintendo Switch (and PlayStation 3 and Xbox 360, if you’ve still got those plugged in).
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Lisa Marie Segarra
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In an unexpected move, furniture giant Ikea has sent a solo indie developer a cease and desist letter reviewed by Kotaku, demanding he make changes to his unreleased survival horror game set in an Ikea-like furniture store. Lawyers representing Ikea are claiming that the game commits trademark infringement because some press outlets have drawn comparisons between their official brand and the game. The Swedish firm have given developer Jacob Shaw just ten days to “change the game and remove all indicia associated with the famous Ikea stores.”
The Store Is Closed is an unreleased co-op survival game, that’s just in the final week of a successful Kickstarter campaign that’s raised just over $49,000. Created by a lone developer, going by the studio name Ziggy, the game describes itself as “being set in an infinite furniture store.”
“You’ll need to craft weapons, and build fortifications to survive the night,” continues the blurb. “Explore the underground SCP laboratories and build towers to the sky to find a way out.” You know, like in a real Ikea? Crucially, nowhere in any of the game’s promotional materials, on its Steam, during its Kickstarter campaign—nowhere—has the word “Ikea” ever been uttered.
Yet despite this, and despite the game absolutely not being on sale anywhere, Ikea’s New York lawyers, Fross Zelnick, have written to Shaw demanding that he entirely change anything in the game that might remind people of their brand.
“Our client has learned that you are developing a video game, ‘The Store is Closed’,” the legal letter explains, “which uses, without our client’s authorization, indicia associated with the famous IKEA stores.”
It then goes on to list the infringing aspects of Shaw’s game.
“Your game uses a blue and yellow sign with a Scandinavian name on the store, a blue box-like building, yellow vertical stiped shirts identical to those worn by IKEA personnel, a gray path on the floor, furniture that looks like IKEA furniture, and product signage that looks like IKEA signage. All the foregoing immediately suggest that the game takes place in an IKEA store.”
Shaw gave me access to an early alpha build of the game, during which the “blue box-like building” and “blue and yellow sign” appear, in their totality, on the menu screen. After that, you don’t see them. There’s currently no branding at all in-game. The store is called “STYR.” Clearly a joke spelling of “STORE,” it is, by coincidence, a Swedish word, meaning “controls.” You know what’s not a Swedish word? “Ikea.” It’s the initials of its founder, a farm he grew up on, and a nearby village. Notably, stores like Tiffany have a trademark over the color that they use in their packaging, so in some ways Ikea isn’t coming completely out of left field here.
Then there are the claims that it has “furniture that looks like Ikea furniture.” But Shaw disputes that he designed any furniture with Ikea in mind. “I bought generic furniture asset packs to make this game,” Shaw said, meaning that this is furniture that can be featured in any game for a price. “I don’t know what that means.” The game does, however, have a grey path on the floor. It is also common for stores to have signage that tells the customer where to go.
Ikea’s argument hinges that the game infringes on their brand because press sites have made the association, rather than the game itself aligning naming Ikea.
One headline says, ‘Someone Has Made a Survival Horror Game Set In IKEA.’ Another headline says, ‘The Backrooms meets Sons of the Forest in new IKEA horror game.’
Those were the two headlines we could find, but it’s possible there are more. The letter also includes the subheadings of these stories as part of the evidence, going on to then state:
“Further, numerous comments by readers of these stories make an association with IKEA stores.”
Based on all this, Shaw has been told that his “unauthorized use of the IKEA indicia constitutes unfair competition and false advertising under Sections 43(a) of the U.S. Trademark Act, 15 U.S. C § 1125(a), and state unfair competition and false advertising laws.”
The lawyers then tell the developer, “You can of course easily make a video game set in a furniture store that does not look like, or suggest, an IKEA store.” The presumed game development experts go on to explain, “You can easily make changes to your game to avoid these problems, especially since you do not plan to release the game until 2024.”
They then immediately go on to inform Shaw that he has “ten working days of the date of this letter” to make all such changes, removing all their claimed “indicia.” Grey paths and all. The game is not up for sale yet.
Ikea is a company that saw revenues of $25.4 billion last year, and Jacob Shaw is some guy in the UK who tried to raise £10,000 ($11,575) on Kickstarter, so Shaw says he has no choice but to comply. While he’s seeking legal advice, he’s certain he’ll have to capitulate, given the costs involved in challenging anything.
“I was going to spend the last week of my Kickstarter preparing an update for all the new alpha testers,” Shaw told Kotaku. “But now I’ve got to desperately revamp the entire look of the game so I don’t get sued.”
Clearly owners of trademarks have a legal imperative to protect them, lest they lose them and their brand becomes recognized as generic. Presumably that’s part of Ikea’s motivation here, as overreaching as it might seem to anyone not familiar with trademark law. Hopefully simply removing the blue box building on the menu screen should really be enough to get rid of the rest of this nonsense, not least because the U.S. luxuriates in far more reasonable allowances for spoof than the U.K.
We’ve contacted Ikea in both the U.S. (from where the threats originate) and the U.K. (where the game is based), along with trademark experts, to ask for comment, and will update should they reply.
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John Walker
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PH by The Novogratz
Ikea is the iconic Swedish furniture brand known for its low prices, flat-pack shipping, and tiny screwdrivers. Millions of people have braved the maze-like big box store searching to furnish their first apartment or simply to find affordable Scandinavian home furnishings. But the Ikea bubble may have burst because the brand’s rock bottom prices have risen to a new high. According to a recent report from Retail Week, the retailer raised prices on some products up to a whopping 80 percent. While not every price increase was so shocking, prices went up at least 22 percent across five of Ikea’s main categories including sofas, beds, dining furniture, drawers [dressers], and mattresses.
It’s worth noting that this research was conducted in the UK and price increases on specific items may or may not apply to the United States market. However, an Ikea spokesperson confirms to Forbes that prices increased nationally in 2022. “Affordability continues to be a key cornerstone for us at Ikea, and our intention remains to keep our prices as low as we possibly can. It’s more important than ever before, as many people face rising living costs and increased inflation. We are not immune to the economic challenges facing businesses, retailers, and many people. To ensure our longevity as a business and employer, we have adjusted our prices to help address increased costs. While we have raised prices on some products, we have also taken steps to make our total offering more affordable for customers every day. Our offer will continue to remain affordable for our customers— reducing prices when and where we can.”
So, if Ikea is no longer in your budget, or you’re looking for affordable yet stylish furniture, here are seven places to consider shopping instead.
Courtney Novogratz and Paris Hilton
Founded by renowned interior design duo Courtney and Robert Novogratz, The Novogratz is a hidden gem full of stylish statement pieces at excellent prices. For those who don’t want to compromise on style or price, there is no better place to shop for furniture and accessories. The brand offers large pieces starting at $399 for a loveseat and $149 for a coffee table. There are items across most categories including home office, outdoor furniture, wallpaper, kid’s furniture, and even lighting. With many smaller pieces, it’s also an excellent place for apartment-dwellers to shop.
In 2022, the brand launched a collaboration with Paris Hilton called PH By The Novogratz. The line features several fun pieces including a pink velvet bed and futon that’s very reflective of Hilton’s aesthetic but definitely not her bank account.
Carmen Cane Bed by Tov
Tov is a smaller female-founded brand with lots of fun, fabulous pieces priced within reach. While the brand has a generous range of furniture across a variety of categories, it’s still far more curated than most online retailers.
Madison Beer and Dixie D’Amelio are fans of Tov’s glamorous yet chic aesthetic which is essentially the complete opposite of Ikea. From lip-shaped sofas to bold tassel table lamps, Tov truly puts the fun back into design. Prices start at under $700 for a sofa and $340 for a desk.
Furniture for all seasons
To say Wayfair sells everything but the kitchen sink is inaccurate because, in addition to furniture and home decor, they also sell kitchen sinks. The mega brand is known for its frequent sales. So items that may not be within budget this week may very well be affordable in a week or two, making Wayfair potentially a better deal than Ikea.
A company spokesperson tells Forbes, “Wayfair aims to give customers competitive prices all year round and run promotions both at key holiday moments and throughout the year as consumers prepare for seasonal moments like outdoor entertaining, spring cleaning, back to school, or home renovation projects requiring new large appliances or even custom cabinetry. This year, in particular, we know customers are seeking strong deals ahead of the holidays and we brought back our biggest sale of the year for the holidays for the first time ever.”
Pet and kid-proof by Levity
Levity is the sister brand to cult-favorite washable rug purveyor Ruggable. Frankly, there isn’t a better place to shop for durable pieces that will stand up to kids and pets. Pricing for chairs starts at $199 and $159 for tables. While the selection is limited (Levity only has living room and dining room furniture for now), every piece is machine-washable and stain-resistant.
The chairs and ottomans feature interchangeable, spill-proof covers designed to withstand everything from oil to red wine and pet accidents. This also means there’s an option to refresh with new slipcovers instead of replacing entire pieces, making Levity a very cost-effective and eco-friendly option for the long haul. Even the tables are scratch-resistant, heat-resistant, and repel liquids. No coaster? No problem.
Exterior of HomeGoods East Hampton, New York
HomeGoods is a fun store to shop at that’s filled with great deals. While the brand recently launched an e-commerce site, the heart of HomeGoods will always be the in-store experience. Best of all, the prices are difficult to argue with. Andrew Mastrangelo Assistant Vice President, Global Communications TJX tells Forbes, “At HomeGoods, we deliver incredible value on an ever-changing selection of exciting top brands and home fashions from around the world, at prices generally 20 to 60 percent below full-price retailers’ (including department, specialty, and major online retailers) regular prices, on comparable merchandise, every day.”
HomeGoods also curates its inventory globally, so while there are plenty of mainstays like Rae Dunn pottery, there are also many treasures waiting to be discovered. Mastrangelo explains, “Our team of expert finders scour the globe throughout the year for the most interesting, fashionable merchandise from top brands, designers, and artisans alike – for every room in the home. Unlike other types of retailers that buy seasonally, we have new home fashions arriving several times a week, with each delivery containing thousands of items.”
World Market’s unique pieces
With 242 retail locations, World Market is a great alternative to Ikea. While the selection isn’t as large as what Ikea offers, this can be a good thing for those who get overwhelmed by too many choices. Prices are very reasonable with coffee tables starting under $200 and dining tables starting under $300. While World Market doesn’t have a signature aesthetic, there are lots of mid-century inspired, contemporary and eclectic pieces that can easily integrate into many design schemes. The store also sells lots of decor, snacks and items perfect for gifting.
Zahra Modern Fabric 5 Piece Sofa from Overstock
Overstock sells just about everything at a price that begs customers to click “add to cart.” From bed to bath and even flooring and refrigerators, this site has it all. With frequent sales and coupon codes, it’s certainly worth scouring for large and small pieces. The e-commerce site also has sets typically found at brick-and-mortar discount furniture stores like three and five-piece bedroom sets, patio furniture sets, and even a small space living section great for apartments and condos.
Click “Add To Cart”
While many think of Home Depot as a place to buy home improvement items like wood, appliances, and power tools, the retailer also has furniture at an accessible price. From entryway tables starting at less than $50 and bookcases starting under $70, it’s a good place to consider if budget is key. While most items aren’t offered in-store, they can be returned in-store, making Home Depot a convenient choice for many. The online selection is also astounding with thousands of options in select categories.
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Amanda Lauren, Contributor
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