ikea: Ikea has more than doubled its online sales in 2 years

New Delhi: Ikea has more than doubled its online sales in India in two years, thanks to the coronavirus pandemic, which has forced people to shop at home.
From around 12% before the pandemic, online sales currently account for more than a quarter of the Swedish furniture retailer’s domestic sales, Peter Betzel, CEO and CSO of Ikea India, told TOI. “We have seen all over the world that online sales and online interest have increased by 70%. That’s almost 30% of total revenue,” he said.
“The trend is here to stay,” Betzel said on the eve of the opening of an “Ikea City Store” in Worli, Mumbai. City Stores are a group of small stores that will be launched by the company to reach more consumers.
While only a limited inventory of products in these small stores will be available for take out, others will be home delivered. The move, which signals Ikea’s omnichannel approach, stands in stark contrast to its original global strategy of relying solely on large-format stores, similar to a Walmart in the United States. “What has also happened is that we have accelerated our omnichannel approach to accessibility,” said Betzel.
Ikea has big plans for 2022, with the opening of another City Store in Mumbai, followed by a large format and a City Store in Bengaluru. Ikea has pledged to invest Rs 10,500 crore in Indian retail operations and rupee 6,000 crore in Maharashtra by 2030.

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David A. Albanese