IKEA CEO discusses plans to transform the business

IKEA's new CEO, Jasper Brodin, has told the Financial Times that the business is 'hungry for growth' and is looking at 'a transformation of our business' over the period 2019-2021.

Mr Brodin advised that 'the speed of change going forward will be incredible,' as the company seeks to respond to changing shopping habits which are increasingly moving online. “The three years will be exceptional when it comes to change, entrepreneurship, test and try and exploring new ways forward.", he added.

Plans include a move away from large, out-of-town store developments to smaller-format city centre branches and 'affordable' home delivery, as IKEA looks to cater to city-dwellers and those without access to vehicles.  The company has already trialled bedroom- and kitchen-only stores in Madrid and Stockholm, respectively, and it has confirmed plans to open small-format stores in ten major global cities, including London, New York and Tokyo.

Furthermore, the article references the fact that consumers are willing to pay for their goods to be constructed in their own homes, suggesting that that the business may well deviate from its existing business model to meet the needs of a wider range of consumers.

"It’s about the mindset: we are not going to have 10 years to gradually change and plan," said Mr Brodin.

Source : Insight DIY Team

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.