Ikea's new UK managing director Peter Hogsted is considering empowering store managers in an effort to energise the British business.
Hogsted, who has been in the post for two months, is conducting a root-and-branch review of the furniture giant's UK operation, which generated sales of£880 million last year.
He is preparing a business strategy, called 'Ikea 2005-2010'. The plan is likely to involve a degree of decentralisation so it can be adapted locally.
'I think the way forward might be to look at store managers in their local markets as the drivers of the business,' said Hogsted. 'There is a danger for a mature retailer to become stagnant in its ways of working.'
Hogsted described Ikea's 12 stores as in 'good shape', but wants to encourage entrepreneurialism by giving managers more freedom. Likely changes include the introduction of store-specific trials and more experimentation with ranging and presentation.
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