Ikea Watch: Ikea Finally Decides to Up Its E-Commerce Game


Friday, January 30, 2015, by Jenny Xie
460614508.jpgA shopper looks around in a store of Ikea in Gwangmyeong, south of Seoul—Photo by Jung Yeon-Je/AFP/Getty Images

It’;s no good if the internet whets your appetite for cool new Ikea products you can’;t impulsively order online. The Swedish furniture giant is finally taking steps to make sure this kind of thing doesn’;t happen, according to a recent New York Times report. After Ikea posted lackluster earnings growth for its latest fiscal year, company reps are admitting they’;ve missed the e-commerce train. Now Ikea is sprinting to bring as much as 90 percent of its products online, compared to the 70 percent currently available.

“We weren’;t one of the early adapters. But we’;ve matured in our thinking about it,” Ikea CEO Peter Agnefjall tells the Times about the brand’;s changing attitude towards the online marketplace. Long reliant on its alluring CGI catalogs, and brick-and-mortar stores that might as well be adult amusement parks, Ikea’;s e-commerce sales shot up 35 percent last year. Part of that comes, according to Agnefjall, from people who do research “on their mobile devices, come to the Ikea store, sit on the sofa, then place their order on the device.”

Well, good on Ikea for catching up with the times at last. But its path to online domination is fraught with web-savvy competitors like Wayfair and Overstock.com, plus its own reputation for ridiculously high shipping costs. The retailer is supposedly also “investing more in its shipment services,” which is hopefully code for cheaper fees.

· As Profit Slows, Ikea Notes Need to Move Online [NY Times]
· A Romp Through Ikea’;s New Collections Coming in February [Curbed National]
· Ikea is Bringing Back its Furniture from the ’;50s, ’;60s, and ’;70s [Curbed National]
· All Ikea coverage [Curbed National]


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