Ikea was founded in 1943 and has been the world’s largest furniture retailer since 2008, with over 420 distinctive stores in more than 50 countries. It has a successful business model focused on offering stylish flat-pack furniture at affordable prices. There is a strong emphasis on containing costs across all parts of the business. In the UK, there are 27 Ikea stores, but expansion has now shifted from its big-box format to smaller store formats – urban, pick-up and pop-up. It is also aiming to further develop its consumer product range, particularly around smart home, and increase the automation of production and supply chain processes. Standard Ikea stores follow a one-way layout, leading customers counter-clockwise around the entirety of the store. Each Ikea store also features a restaurant serving traditional Swedish food. The furniture powerhouse was slow to launch its online offering but has focused on its ecommerce arm more as part of a transformation plan since 2018. This has included considerable investment in its click-and-collect services.
Ikea is offering a new circular recycling service to transform old mattresses into reusable raw materials.
Ikea has bought Brighton’s main shopping centre and today unveiled plans to open a new mini Ikea store within it.
eBay has launched the Circular Change Council alongside major retailers to promote circularity and reduce furniture waste.
Ikea has posted strong sales growth and promised to reduce prices in the next financial year.
Retail Week and WRC’s Global Innovation Report explores how retailers across 18 markets – from Carrefour in France to Alibaba in China – are investing to future-proof their businesses. We take you inside Ikea’s plan of action.
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