IKEA updates its’ strategy

The Swedish furniture giant is planning to establish itself in South America and expand in South East Asia, “within the next five years,” according to the CEO Torbjörn Lööf. The expansion is in line with IKEA’s goal of dominating the global furniture market. Dagens Industri reports that Chile, Colombia, Mexico, and Peru are highest on the list of South American countries where IKEA wants to establish itself. In South East Asia, the company is planning to add Vietnam and the Philippines to existing markets that it serves in the region.

In a separate story, the Financial Times reports that IKEA is making major adjustments to its sales strategy to adapt to the threat of online retailers, like Amazon and Alibaba. With some of the world’s best known physical retailer brands, like Toys R Us becoming bankrupt, Torbjörn Lööf, CEO of Inter Ikea, said the decision to turn to online retailers is part of a broader overhaul, where the company is complementing the traditional warehouse, with new types of stores, particularly in city centres. “[This] is the biggest development in how consumers meet Ikea since the concept was founded” he told the Financial Times.

 

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Edgar Mannheimer is a journalist at Mundus News. He is also currently working for SVT Nyheter as an online reporter. Edgar has a passion for politics, foreign affairs and music. He grew up in Egypt, the US, Stockholm, and Jordan, following his mother’s job as a foreign correspondent. He returned to Sweden to study at Lund University, where he received a Bachelor’s Degree in Political Science and Arabic/Middle Eastern Studies. During his time in Lund he was editor-in-chief of Radio UPF, the radio committee of the Association of Foreign Affairs, and also started a music program as a solo project. After Lund, he moved to Stockholm and received a Master’s degree in journalism from Stockholm University’s media institution, JMK.