Ikea will "invest billions" to stay ahead of Amazon & co

Ikea will "invest billions" to stay ahead of Amazon & co

Ikea will "invest billions" to stay ahead of Amazon & co
Shutterstock

In the next few years, Ikea aims to spend billions to “be as close as possible to the consumer” and to stay ahead of pure players like Amazon, according to new Chief Financial Officer Juvencio Maeztu.

 

3.1 billion euro investment in 2016/17

Ikea will need to adjust if it wants to maintain its lead, not only on Amazon which launched two furniture brands in November: other competitors include Flipkart (India) and Otto and Home24 (Germany). That is what Maeztu told Reuters in his first interview as Ikea Group’s CFO. Since Ikea Group owns 363 of the 413 Ikea locations, it is by far Inter Ikea’s most important franchisee.

 

“What is more relevant than ever is to be as close as possible to the consumer - it has much more power than before.” That is why Maeztu wants to invest in smaller urban showrooms to “reach the younger generations” and at the same time, he wants to expand the web shops in order to “be able to compete with the internet giants”.

 

The Spaniard did warn that that will cost a lot of money and will also impact profitability. In its past fiscal year, 2016/17, Ikea Group invested more than three billion euro into its stores, distribution centers and shopping centers. “And we will invest that same amount or even more in the next three years”, Maetzu said. The CFO wants to use those billions to expand the chain’s “city-center formats”, its digital services and its distribution centers for e-commerce.

Questions or comments? Please feel free to contact the editors


Gerelateerde items

Chinese internet giant launches attack on Italy

11/07/2018

Chinese internet giant JD.com wants to expand to Italy: the Milan office would be the second European office in a short period of time for Alibaba's great rival.

Profits H&M Group take another hit

28/06/2018

Swedish fashion group Hennes & Mauritz has published a fourth consecutive quarterly turnover that was lower than expectations. The group that owns chains like COS, Monki and &Other Stories saw its profit drop by 21 %, despite a (slightly) higher turnover.

Flotation Home24 latest success for Rocket Internet

18/06/2018

German investment group Rocket Internet has brought yet another one of its ventures to the stock exchange. Following Zalando, HelloFresh and Delivery Hero, it was online furniture store Home24's turn to raise investments for growth acceleration this way.

Casa v2.0 expands geographically and to home delivery

06/06/2018

Belgian decoration chain Casa has launched a new web shop, that expands from mere click & collect to home delivery. From now on, the Dutch as well can order their furniture for home and garden online.

Blokker Holding has record loss, but sees an upturn

29/05/2018

Blokker Holding has reported a 344 million euro loss for the past fiscal year, largely because of high one-time restructuring costs, according to the group. The implementation of its new strategy is on schedule.

Ikea plans to cut 150 jobs, including in Belgium and the Netherlands

04/05/2018

Ikea will be cutting 150 jobs, some of them in the Belgian and Dutch branches as well. The plan is part of a major reorganisation effort to help prepare the furniture giant for the growing competition of large e-commerce players.