Swedish furniture giant IKEA, known for its maze-like hypermarkets, plans to more than double its presence in Australia by opening small urban stores and pick-up points and selling products online for the first time. IKEA Australia country manager David Hood has unveiled ambitious plans to lift the number of outlets from eight to about 22 over the next few years Galleria Wodonga massage building another Ikea Australia online or four 30, square metre mega-stores and as many as 12 small-format stores, click and collect outlets and parcel pick up points.
The small-format stores and pick up points, which are currently being tested in markets such as Spain, Germany, the UK and Tasmania, would enable consumers to buy top-selling products such as Billy bookcases and Klippan sofas in-store and collect products ordered online from a dedicated Australian e-commerce site. IKEA also plans to build two distribution centres DCsincluding apallet Ikea Australia online logistics centre, which would allow the company to increase the number of products stocked in Australia from to almostslashing the time it takes to ship orders to customers.
Ikea Australia country manager David Hood expects sales to more than double as the retailer opens small format stores and starts selling online.
Credit: Jessica Hromas. Mr Hood spent time this week helping customers load their cars at the Marsden Park store as part of an global initiative that forces all staff — including the CEO Massage millburn Maroubra to work one week a year in stores.
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Most customers tend to shop at IKEA four or five times a year, and those who live hours away shop once or twice a year. Mr Hood hopes to boost the number of visits to seven or eight by making stores more accessible and giving customers the option to shop online. Mr Hood sees scope for another one or two more mega-stores in Melbourne and Sydney and a network of smaller stores and pick up points along the east coast, including Bi couple Orange NSW Central Coast and the Gold Coast.
Austraia Mr Hood said Australia was now enjoying strong support from its European parent, which will fund the investment in outlets, DCs and e-commerce. IKEA is celebrating its 40th anniversary in Australia this week but Mr Hood said the Australian business between and was "a mess" of sub-scale stores, Massage aex in Australia of infrastructure and ad-hoc planning.
In IKEA bought back franchised operations on the east coast and set about closing underperforming stores, building new stores that matched the company's European model onlkne leasing Ikea Australia online distribution centre, cutting the time it took to get stock into stores from 12 to five weeks.
However, as IKEA grows, so too will interest in its finances, particularly the amount of tax it pays in Australia. Mr Hood defended the structure but agreed that it sat uncomfortably with the company's image as an ethical organisation and a world leader in sustainability.
Changes may be on the way.
These topics are always on the agenda on a global level," he said. IKEA Australia plans small stores ahead of online push. The Sydney Morning Herald. Changes may come "When I came in we had been on a journey — Ilea are now half way through that journey," he said.
IKEA Australia launches online store
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Swedish furniture giant IKEA, known for its maze-like hypermarkets, plans to more than double its presence in Australia by opening small urban.