In the News
Amazon - A New Distribution Channel for Ikea?
IKEA was slow to move into online sales. However, it now appears to be accelerating changes to its traditional store-based approach to distribution.
This would represent a significant change for Ikea. Among the challenges they will face will be the loss of profit margin (Amazon typically takes a 30-40% cut of the selling price) and how to maintain the Ikea brand image on third party websites.
The move is part of a broader review by Ikea of its distribution methods, although there is no suggestion that it will abandon its large-store format anytime soon.
The FT article reports that:
"Ikea is also experimenting with new store formats including city-centre pick-up points and specialised pop-up stores as well as smaller shops that have fewer car parking spaces and less inventory.