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We were taken into a meeting today. We were told that a memo had been issued by the CEO of IKEA, Anders Dahlvig. Its stated that, "In the future, there will be no further investments to develop the Home Shopping or Online sales channels. The decision by the board is based on the conviction that IKEA can give customers the best offer and the lowest price by making the range available only through the stores. Home shopping and online sales require considerable investment and a specific distribution set up, which is a big undertaking. Today we are not prepared to make that committment." we were told that it might be on the news tonight. We are trying to fight to stay open because we are the largest in the world when it comes to Home Shopping! $60.9 million a year! Our call center manager is over in Sweden fighting for us! We were told we would be updated Tuesday. Please pray for us!
Thanks for sharing this news with us- and we will be thinking of all the IKEA co-workers this decision can or will impact.
We'll never get to see the numbers behind the decision, but this is so counter to the direction retail sales is heading across the world. IKEA has always had a fanatical devotion to the range, and the experience of the range in the stores. While they may still feel that purchases must happen in the store, I sincerely beleive they will not reach the potential of the NA market without a VASTLY improved online information and planning offering.
It will also be interesting to see if the strategy includes a significant ramp up of new stores to better serve their clients who are more than 300 miles from the nearest store. Very different issues than Europe.
Very interesting and very dramatic! Does this reflect a difference in North American and European attitudes about online shopping, I wonder? It seems utterly bizarre to back off of online commerce, but maybe it's really different across the pond.
Wow. I'd love to see them rethink this decision specifically with regard to the US market, or alternatively, rethink their demographics for placing new stores. I'd love to see something like smaller satellite stores in smaller communities, that could carry some of the smaller and more popular furniture items, and receive bulk shipments from main stores for special orders.
This is a real bummer for those of us so incredibly far away from a store. If this does happen, I think they're cutting their own throats in the NA market. A satellite store would indeed be a good alternative.
I thought we'd been seeing a slow change where IKEA seemed to be gradually waking up to the realities of internet commerce, and now they want to just pull the plug on the whole thing?
James
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To be honest, I'm not that surprised. They don't need to. And I don't believe that they'll open satellite offices in lower density areas either, again because they would be higher cost (to IKEA) and they don't need to. I would imagine that they would only rethink that if another competitor were successful at a Walmart-type of approach.
IKEA is NOT doing as well as expected in NA. IKEA is actually flailing around in the NA market- they want to go upscale with Stockholm and rush into IKEA-marking their appliance offering before they do any of the work to establish the brand in that postion. While IKEA has unique economics, as long as the per square foot sales makes the grade, and the experience supports the brand, there is no particular reason why they couldn't go with a smaller store. Not all the IKEAs are 40,000 square feet, and certainly the European market and some NA East coast stores support more stores in a metro area. The Plymouth Meeting and Seattle stores are not as large as Twin Cities from what I can tell.
IKEA does not have a clear brand in NA. Who do they want to be? I can't tell, and I am paying attention!
You said this might be on the evening news...was there a press release? If so, I haven't seen it and since we're an official news outlet, we're on the mailing list. Just curious about this as it would have major impact on our members, but I'd like to have some verification of the facts prior to sending anyone into a panic.
If it were during business hours, I'd contact the Internet guy in Conshohocken, but no such luck...
Susan
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Bad News For Home Shopping Across the World 
Just curious about this as it would have major impact on our members, but I'd like to have some verification of the facts prior to sending anyone into a panic. 
