The COVID-19 pandemic's effects on supply chains within the Swedish retail industry - Experiences from the DIY and furniture sectors

Abstract

The COVID-19 pandemic has caused severe disruptions and consequences to global supply chains. The pandemic commenced in China in late 2019 and quickly spread throughout the world. China is a country that plays a key role in international trade as it is a large producer and exporter of goods. Furthermore, the Swedish retail industry is highly dependent on import goods, from mainly Asia and Europe, and therefore experienced large challenges as the pandemic caused major supply chain disruptions. The aim of this study was therefore to investigate how supply chain disruptions caused by the COVID-19 pandemic have affected the Swedish retail industry, to gain a deeper understanding of what measures have been used by the Swedish retail industry to mitigate the consequences. Moreover, the study aimed to describe the main features of the implemented measures from the chosen segment, which actors within the industry can benefit from when future disruptions occur. The study was conducted with a qualitative research approach with abductive reasoning and a literature study was conducted by collecting theories from previous research. The empirical data was collected through semi-structured interviews with four respondents from four companies within the Swedish retail industry. Three of the respondents operated within the DIY (Do It Yourself) sector and one within the furniture sector and all respondents held top management positions within the companies' supply chain departments. The findings of the study demonstrate that the Swedish retail industry has been heavily affected by the supply chain disruptions caused by the COVID-19 pandemic. The pandemic contributed to a high level of uncertainty, increased lead-times, delays in deliveries, and increased costs. The implemented measures taken by the Swedish retail industry have been stricter and more frequent controls, increased information sharing, and earlier placement of orders to mitigate the consequences. Moreover, this study contributes to the existing theory of consequences of supply chain disruptions and gives new perspectives as it demonstrates that the studied companies' overall profits increased during the supply chain disruption caused by the COVID-19 pandemic.