Ikea revamps its stores as e-commerce grows

0

The expenditure of three billion euros by the end of next year marks a step forward for Ingka, which has invested 2.1 billion euros in its new and existing stores between 2019 and 2021.

The company that controls most of the Ikea branches is reorienting its stores to adapt to the rise of e-commerce. Ingka Group said on Monday it would invest three billion euros ($3.2 billion) by the end of 2023 to open new stores and upgrade existing ones.

“The investment will allow us to renovate and repurpose existing stores,” Tolga Oncu, director of retail operations at Ingka Group, which operates more than 400 of the approximately 500 Ikea stores worldwide, told AFP. .

As more businesses shift their focus to online shopping, the company noted in a statement that “our stores remain one of our greatest strengths.”

But Oncu also pointed out that physical stores were being revamped to support online shopping.

He cited the example of a branch in Kuopio, Finland, which was upgraded to support online order shipping.

The expenditure of three billion euros by the end of next year marks a step forward for Ingka, which has invested 2.1 billion euros in its new and existing stores between 2019 and 2021.

Significant investments of nearly 1.2 billion euros are planned in London, and Ingka will also continue to invest in markets considered mature, such as Spain and Germany.

Founded and based in Sweden, Ikea belongs to a complex structure of companies and foundations based mainly in the Netherlands, Switzerland and Liechtenstein.

Traditionally, huge Ikea stores have been located in the suburbs or on the outskirts of cities, but the furniture giant began a change in strategy by opening its first city center store in Hamburg in 2014, and a new model with an offer smaller in Paris in 2019. .

It also plans to open new stores in or near city centers, including Nice this week and Stockholm this summer.

The pioneer of home-assembly kit furniture was founded by Ingvar Kamprad in 1943, and has become a multinational giant present in around thirty countries.

At the beginning of March, Ikea announced the suspension of its main activities in Russia and Belarus following the Russian invasion of Ukraine.

The move affected nearly 15,000 employees, 17 stores and three production sites as well as 47 suppliers in Russia and 10 in Belarus. “Our activity will remain on hiatus until further notice,” Oncu told AFP.

Share.

Comments are closed.