The company informed that the money
would be spent across all regions, though about a third is earmarked for
London, a test-bed for new store formats and logistics set-ups
IKEA retailer Ingka Group is
reported to spend 3 billion euros ($3.2 billion) through 2023 on new and
existing stores, much of it to modify its trademark out-of-town outlets so they
can double up as e-commerce distribution centers.
The company informed that the
money would be spent across all regions, though about a third is earmarked for
London, a test-bed for new store formats and logistics set-ups
(Reportedly).
Tolga Oncu, Retail Manager at
the Ingka Group has said that most of it will be in our existing stores since
we talk about transforming, and redesigning the purpose of the square
meters.
In the past few years, Ingka
has adapted to the rise in online shopping by developing smaller stores,
revamping its website, and rolling out a new app as well as digital services such
as remote planning tools.
“We feel we have a
catch-up to do on the back-end of our operation (and) we have realized that by
including stores in our last mile and fulfillment design network we can create
a win-win situation,” Oncu said.
During the pandemic, IKEA has
seen record demand for its cut-price home furnishings as people spent more time
at home.
Over the past three fiscal
years, Ingka has invested around 2.1 billion euros in new and existing stores
in its 32 markets.
The latest spending will also focus
on new traditional “blue-box stores” in Romania, China, and India,
and new city stores, as well as planning studios, in Canada, Denmark, Italy,
India, the United States, and other countries. Courtesy: www.indianretailer.com
