Money The radical plan Ikea's new boss has for the retailer

19:49  14 february  2018
19:49  14 february  2018 Source:   msn.com

Target stores could soon turn into Kmart outlets – or simply disappear

  Target stores could soon turn into Kmart outlets – or simply disappear The future of embattled department store Target became a little clearer on Monday when parent company Wesfarmers revealed it would be shrinking the retail chain.It was part of what Wesfarmers calls its new “brand agnostic” approach, which could see unprofitable Target stores across Australia converted into more profitable Kmart stores.In a media conference on Monday, Wesfarmers managing director Rob Scott revealed lower-than-expected sales at Target had forced the company to record a “non-cash impairment” of $300 million — which, for any non-accountants who might be reading, is not a good thing.

Money radical plan ikea ' boss retailer , The radical plan ikea ' s new the radical new plan ikea ' s A replace burbank ikea : laist, Developers have submitted their proposals to the city of burbank earlier this month for approval. as for the soon-to-be-demolished ikea , it's moving just a mile away. and this new

While IKEA products have evolved as lifestyles have changed, IKEA bosses have realised that the retailer needs to do its own bit of home improvement. That is now changing. In a radical overhaul of how IKEA has been operated for decades, Torbjorn Loof, boss of parent group Inter IKEA , last week

For years, Ikea in Australia has been a well known retailer - a destination for shoppers. The problem is that Ikea's not been in enough places to capture more market share. 

Well that might be about to change.

The new boss of Ikea, Jan Gardberg, has a plan to double the market share of Ikea from around six percent currently, to 12 percent.

To do that, he has a radical plan that will potentially see some cheaper products in store, local manufacturing, more store openings including pop-up Ikea stores, a more significant online offering and an even more radical plan to roll out cheap solar panels to take pressure off electricity bills.

Target stores could soon turn into Kmart outlets – or simply disappear

  Target stores could soon turn into Kmart outlets – or simply disappear The future of embattled department store Target became a little clearer on Monday when parent company Wesfarmers revealed it would be shrinking the retail chain.It was part of what Wesfarmers calls its new “brand agnostic” approach, which could see unprofitable Target stores across Australia converted into more profitable Kmart stores.In a media conference on Monday, Wesfarmers managing director Rob Scott revealed lower-than-expected sales at Target had forced the company to record a “non-cash impairment” of $300 million — which, for any non-accountants who might be reading, is not a good thing.

IKEA has just brought in the man who was heading its largest market to kickstart its newest one. Peter Betzel, till recently heading the furniture retailer ’ s business in Germany, will now take charge of IKEA first announced plans to enter India six years ago, with an initial investment of Rs10,500

That alone would make Ikea a leader in the retailing business, but that’ s not what I’m talking about here. The maze-layout of the showroom is an amazing floor plan , and while Stew Leonard’ s is one of the few other retailers who have picked up that trick, it is an effective tool.

As Gardberg says: "We have had the brand presence in Australia for the last four decades, and the past five years we have put a lot of focus to establish more stores - we are now ten stores. For the future, I believe there are an additional five or six stores we can implement here in Australia."

Gardberg previously ran Ikea in Russia and China, but for him, Australia is a challenge of scale.

He knows Australians recognise the Ikea brand, but many have not been able to access it. He is also conscious that Australian consumers have the money to spend, if the right offer is put in front of them.

"If I was to be a little bit self-critical, maybe we have been a little bit stuck in the old ways of serving, expecting people to come to the store, and you have to pick all of the items yourself. Now it's not about either-or, we have to do both, and that means to expand our service options," he said.

China's largest retailer, JD.com, is opening in Australia

  China's largest retailer, JD.com, is opening in Australia JD.com, China’s largest retailer by revenue, is opening a local business office in Australia. The Australia and New Zealand regional headquarters of the NASDAQ-listed company will be in Melbourne’s Collins Street.“Our customers are demanding more and more high-quality products from Australia and New Zealand, and this move is a major step toward meeting that demand,” says Richard Liu, JD.com’s chairman and CEO. “Brands and retailers looking for a trusted partner who will both build their brand, and protect their IP in China now have an easy point of contact in the region.”JD.

While IKEA is best known for its furniture, which apparently uses 1% of the world’ s timber, the retailer also has a well-known food retail business, including in-store restaurants “We don’t need gradual change but radical change and we are willing to challenge our business model to get there,” he said.

Ikea has a 12% market share in the UK, outstripping rivals such as Argos, John Lewis and sofa retailer DFS. Image copyright Ikea . Image caption Scandi-chic was a new concept in the UK in 1987. Ikea ' s sheer size makes more radical change difficult, says Mr O'Brien.

Jan Gardberg's new plan for Ikea looks to double its market share, lower prices and open more stores. © AAP Image/Dave Hunt Jan Gardberg's new plan for Ikea looks to double its market share, lower prices and open more stores. From its one distribution centre in Sydney, Ikea will eventually have three, to help stock the new stores but also to fulfil the online demand.

Part of Gardberg's radical plan is to seek local manufacturers, to source locally.

"We are coming up to the threshold where it's possible to bring domestic production into Australia. Today we don't have any domestic production here... it is all imported. In categories of bulky goods, like upholstery mattresses, we are seriously looking into domestic production - that will help us to lower prices," he said.

But perhaps Gardberg's most radical idea is about solar panels, following on from international roll-outs.

"We have already introduced that into the UK market  and in Poland and something similar in Japan, and I and the team would like to find a way to introduce that to the Australian market," he said.

But his plan is even more radical than that.

"It would actually be cost-neutral because we believe this to be another positive way that we, as a big company, can contribute for the sustainable life at home for the many people in Australia."

Ikea is changing, and growing. And that in itself is another challenge to established Australian retailers already feeling pressure from the squeeze on consumer budgets, cheaper prices and more and bigger international retailers entering the market. 

7 reasons I'd want this 'Game of Thrones' character to be my real-life boss .
Who would you want to work for if you were somehow magically transported into TV's 'Game of Thrones'?Now let's talk about who you'd actually want to work for if you were somehow magically transported into the show.

Source: http://au.pressfrom.com/news/money/-55332-the-radical-plan-ikeas-new-boss-has-for-the-retailer/

—   Share news in the SOC. Networks

Topical videos:

This is interesting!