Sunday , January 17 2021

Eco decryption. Ikea cuts jobs and works in city centers

Future Ikea store in Paris, near Place de la Madeleine.
Future Ikea store in Paris, near Place de la Madeleine. (DELPHINE GOLDSZTEJN / MAXPPP)

Ikea size in the workforce: the Swedish brand has announced that in the next two years it will remove 7,500 jobs worldwide. This is not because Ikea is mistaken that these messages are deleted. In contrast, Ikea succeeds, its sales are progressing. The furniture giant announced in October last year a turnover of 34.8 billion euros for 2018.

This plan corresponds to a real strategic brand change. Ikea today is mainly located on the periphery and now wants to develop in urban centers. The brand wants to adapt to the changing lifestyle of customers who are gradually abandoning the car and can no longer go to remote areas, as well as the fact that more and more people are moving into small spaces.

Therefore, we should expect stores in Paris or London. Next summer, Ikea will open its doors in the heart of the capital, not far from Madeleine Square, as well as in London in the spring of 2019 in the Greenwich area … In Tokyo, there are also opportunities to discover Shanghai, New York.

It was in Hamburg that Ikea installed its first store in the city center four years ago. A pilot project that tested a new concept, offering products adapted to small living spaces. And it worked well. Ikea is also testing more thematic formulas: for example, he has just opened the Stockholm showroom website. In Madrid, this space is intended for a bedroom.

And these evolutions require the reorganization of teams. Parent company Ikea wants to simplify its organization. Of a total of 160,000 employees worldwide, 7,500 job cuts will mainly affect administrative positions. But at the same time, in the next two years,
the brand plans to create 11,500 items for these new outlets, as well as digital ones.

Because Ikea also wants to develop online commerce. This is even one of his priorities. Today, the brand is behind this niche, it is only 5% of its sales on the Internet. Today, digital is where the most successful retailers grow. In addition, from 2019, Ikea will provide 100% of its range on the Internet, and to facilitate removal of orders, the brand will establish numerous withdrawal points throughout France.

For example, in large cities in France there will be 7,000 retransmission points for a client to recover small packages close to home. In the same vein, the firm also relies on the development of Click & Collect, which allows you to order online and receive your purchases at the store whenever you want. With a new system that will be tested in one third of stores in France: XXL tables are available 24 hours a day and seven days a week to restore order even after the stores are closed.

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