IKEA: New Approach and Record Sales

On Tuesday, multinational group of companies that designs and sells ready-to-assemble furniture, appliances and home accessories, IKEA, has announced record sales which include a 30% increase of online revenue.

IKEA is currently using roughly 22 click-and-collect locations to determine specific products and the amount in stock for customers, and evaluate the progression of each locations.

“This is part of the total conversion of IKEA from a traditional brick-and-mortar retailer to a multichannel retailer with the stores at the heart,” Chief Executive Peter Agnefjäll told the WSJ.

According to consumerist, the company’s click-and-collect points are much smaller than its suburban behemoths, averaging about 20,000 square feet. The concept works pretty much how it sounds like it would: customers order products online and then pick up their purchases in person. And for those who only visit the store for the grub, some locations even include a cafe that offers traditional IKEA fare like meatballs and salmon.

So far, IKEA’s gamble on online shoppers is paying off, as the company reported sales in the last 12 months were up 7.1% from a year before, while same-store sales climbed by 4.8%.

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