US EditionIKEA battles Amazon, Temu as market shifts bring pain to flat-pack dynasty
IKEA cuts prices and boosts digital and omni-channel services while investing $844 million in forests to secure wood supply amid fierce online competition, with e-commerce now 28% of sales.
- Jakub Jankowski, 49-year-old Polish national, took charge of Inter IKEA on Jan. 1, setting a mission to shorten supply chains, expand circular models and develop smaller, flexible formats.
- Amid soaring input costs, IKEA faces multiple shocks including a costly exit from Russia, tariffs, soaring timber costs, sluggish housing markets, and competition from Amazon, Temu and Shein.
- E-Commerce now accounts for 28% of sales, and IKEA recently piloted Lada, a small-format store for towns of about 100,000 to 200,000 people, while investing �720 million in forest land.
- Inter IKEA reported profit plunging 26% in the year ended Aug. 31 after it cut prices, while IKEA stores drew about 915 million visitors, with Greenpeace criticizes sourcing, which IKEA denies.
- Despite pressures, the foundation ownership lets IKEA reinvest and plan on decade-long cycles, supporting its scale of 808 outlets, about 222,000 employees and �44.6 billion in annual retail sales.
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11 Articles
LA Daily News
IKEA battles Amazon, Temu as market shifts bring pain to flat-pack dynasty
By Rafaela Lindeberg | Bloomberg As the first snow fell in November over Älmhult, the small Swedish town where IKEA was born in the 1940s, managers of the world’s biggest furniture retailer from across the globe gathered for its annual summit on products, prices and priorities. Beneath the bonhomie under the warm glow of Scandinavian lamps and the corporate talk of “togetherness” was a sense of urgency. The iconic global brand with its familiar …
Declining profit: The upheaval in the trade is exemplary for the Swedish furniture dealer.
IKEA, the world's largest furniture retailer, is experiencing one of the most difficult periods in its more than eighty-year history: struggling with stagnant sales, rising raw material prices and increasingly fierce online competition, Bloomberg reported.
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