Ikea builds up its online sales systems
11.12.2015 339 views
Ikea Group, the Swedish furniture chain, is ramping up its e-commerce business and sees its website delivering 10 cents of every euro in revenue by 2020.
Online sales exceeded 1 billion euros for the first time in the year ended in August, accounting for about 3% of total sales, CEO Peter Agnefjaell said in an interview Thursday. He expects that number to rise to 10% of sales by 2020, by which time the retailer will have expanded web sales to all its markets.
Ikea’s business model is less suited to online selling than for many retailers, as it has mostly relied on shoppers driving to its out-of-town outlets, collecting purchases themselves from warehouses, and spending time transforming flat-packs into bookshelves and beds. But the company is investing in new online systems, including one that will smooth the flow of orders, which should help it reach a target of 50 billion euros ($55 billion) in sales by 2020.
“Already today we have 1.9 billion visitors to ikea.com so it’s not like you just connect two cords and then it works,” the CEO said. “It’s an enormous investment in systems and distribution networks that should fall in place before we can introduce it on more markets.” The company declined to disclose the size of that investment.
Source: Internet Retailer