IKEA turns its stores into warehouses

The Swedish furniture giant wants to use its flagships to place orders online.

If Ikea still believes in the future of its stores, it now wants to use it to accelerate its online sales and better serve its customers. Ingka, which operates 90% of Ikea stores worldwide, announced Monday that it will invest more than 3 billion euros by the end of 2023 to expand its global network and renovate its existing stores. This is 1 billion euros more than the previous period. “More than ever, we want to improve our network to deliver an inspiring shopping experience – no matter how and where our customers choose to shop with us.Explains Tolga Onko, Operations Director of Engka Group. This investment is intended to ensure the long-term viability of our business, making IKEA more accessible, affordable, and more environmentally friendly. “Especially when customers order online.

IKEA is no longer a small player in e-commerce. Its online sales have grown exponentially over the past two years. It makes more than 30% of its sales online (35% in France), compared to 10% in 2019. But the Swedes are not against digitization and the store. Like many other distributors (Zara, Kingfisher, which owns Castorama in France, Fnac Darty, etc.), he believes, on the contrary, that the store plays a crucial role in improving the online shopping experience.

Delivery time halved

Our stores remain one of our main strengthsexplains Tolga Öncü. We see that many of them already play a dual role. This investment will not only support an inspiring in-store experience, but also cheaper and faster delivery of online orders from stores. »

In France, the group built a mechanical tower in the Plaisir store, in Yvelines, in order to increase the spaces for preparing orders, without reducing the space for displaying products.

Ikea recently renovated several outlets so they can prepare and ship orders placed online. The store in Kuopio, Finland, for example, has just been rebuilt with this in mind, which made it possible to halve the delivery time everywhere in the entire country, and reduce its cost by 40%. In France, the group built a mechanical tower in the Plaisir store, in Yvelines, in order to increase the spaces for preparing orders, without reducing the space for displaying products.
Furthermore, with 392 stores in the suburbs and 73 stores in the city center in 32 countries, IKEA believes it still has room to expand its physical network. “Even in our more mature markets, such as Germany or Spain, we will continue to invest because we continue to see good potential to develop our business.”continues the Operations Director of the Ingka Group.

downtown test

Besides its suburban stores, the group is opening an increasing number of downtown stores. A way to approach consumers who don’t want to spend time going through the big yellow and blue chests that have made the brand so successful. To find the right formula, Ikea hits tests. In Paris, he opened a second store dedicated to decoration in June, and a kitchen and storage design workshop in March. He plans to open a store dedicated to IKEA used furniture. Since the end of March, a tester in Perpignan proposes to introduce customers to the entire width of Ikea in an area of ​​\u200b\u200b9 square meters, thanks to the projection system. New stores will also open soon in downtown Stockholm, Toronto or Madrid.

But Ikea isn’t giving up on its historic look because of all that. He considers downtown stores to complement his “big boxes”. The SWEDISH will open a 24,000 square meter suburban store on Wednesday in Nice, which has been dreaming of setting up shop for decades. For this four-year project, Ingka spent 120 million euros. This flagship will present all products sold by IKEA in France. It will also be equipped with a mechanical tower dedicated to preparing online orders.

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