Ikea’s newest stores have smaller footprints, from pop-up sites, to stores under 10,000 square feet. That’s a big change, compared to the 25,000 square feet of traditional stores.
It’s all part of a new service design for Ikea. In the past five years, the retailer has seen a decrease in younger couples shopping at the traditional large stores. As e-commerce has grown for competitors, Ikea is moving to test smaller stores with technology enhancements, increase staffing to give a more personal experience, and compete in the e-commerce channel.
These pilot programs illustrate the need to rework their supply chain to support multiple distribution channels in the future.
This post is based on the Bloomberg article, The Tiny Ikea of the Future, Without Meatballs or Showroom Mazes, by Carol Matlack, January 10, 2018.
1. What are the order qualifiers and order winners being addressed in each of the new retail channel outlets being piloted by Ikea?
Guidance: Review order winners/qualifiers. Students should then apply the order winner/order qualifier concepts to each retail channel outlet being piloted. Are there multiple ways to address each qualifier? How would Ikea evaluate the effectiveness of each Continue reading