IKEA sets sights on affordability, accessibility and sustainability

Global home-furnishing brand looks set to expand its reach through more affordable quality products across its 63 markets worldwide

IKEA has just entered into 81st years of successful business due to its clear vision and strategy as its primary focus is to develop quality home-furnishing products through most efficient way to make it affordable, accessible and sustainable for mass population across the globe, its top official says.

Jon Abrahamsson Ring, Global CEO of IKEA Group, said the vision of IKEA is to create a better life everyday by developing good home furnishing products which should be easily accessible and affordable for as many as possible to its worldwide customers.

Talking to select group of media at IKEA Festival Plaza, Jebel Ali Dubai, he said IKEA UAE has reduced prices of 3300 product to ensure that wide range of its products are affordable for its customers.

"We can understand that people are struggling against inflation, price-hike and multiple challenges, but at IKEA, we've decided to make our products affordable, accessible and sustainable as much as possible in the long term," Jon said.

Vinod Jayan, Managing Director of Al-Futtaim IKEA, was also present on the occasion and shared insights for IKEA operations in the UAE, Qatar, Oman ad Egypt.

"IKEA is planning to launch or upgrade six to eight outlets in the region in next two years. We've launched recently new small-format stores in Fujairah and Abu Dhabi and received a very good customers feedback in line with our big-concept stores in Dubai and Yas Island," he said.

To a question, he said IKEA will launch two more outlets in the UAE - one in Al Ain and the other in Abu Dhabi to cater to growing customers demand in the region.

Big opportunities

Referring to a recent survey, Jon said IKEA is one of the strongest brand in the world generating 45 billion euros yearly sales worldwide, attracting 860 million visitors annually and engaging over 220,000 co-workers in the supply chain globally.

"We have identified three big opportunities for IKEA and its franchise partners across its 63 markets worldwide. Our top most opportunity is to make IKEA more affordable and help people with quality products at lower prices."

"Secondly, we want to make IKEA even more accessible through all possible ways by welcoming customers at stores physically or digitally as well as offering our products through online channels. We've noticed a remarkable growth in e-commerce as it increased from less than five per cent in 2019 to 25 per cent today," he said.

The third and the last big opportunity for IKEA is to achieve sustainability, according to Jon. "We have very strong ambition as far as sustainability is concerned - it should be affordable to everyone."

"Sustainability will have a very little impact on the world as well as on IKEA business if it is affordable to rich people only. We constantly strive to have more affordable and sustainable solutions that can go hand in hand," he said.

Accessibility a major pillar

Jon said accessibility is central to IKEA’s growth strategy, and "we're excited to expand" with new store openings in the UAE.

Commenting on this, Vinod said, “We have two small-format stores coming soon in Al Ain and Al Wahda, designed to be convenient while still offering our full range of products."

Additionally, he said Salalah (Oman) will feature an order and pick-up point, ensuring customers can easily access IKEA's offerings.

"These stores will emphasize sustainability and affordability, allowing customers to create functional homes that also support sleep well-being - no matter where they are, and without breaking the bank!"

IKEA price strategy

Despite the global economic challenges, Jon said Al-Futtaim IKEA has maintained its commitment to affordability by reducing prices on over 30 per cent on many of its most-loved products.

"The new lower price (NLP) initiative ensures that customers can create their ideal homes without overstretching their budgets, offering value and convenience in challenging times," he said.

In the dynamic Middle East market, IKEA follows a 'glocal' approach - combining global values with local relevance. This includes tailoring product offerings, like space-saving solutions for smaller homes and items that reflect the multicultural environment of UAE.

"Through local partnerships and community engagement, IKEA strengthens customer relationships while staying true to its core principles of affordability, sustainability, and design excellence."

Jon paid rich tribute to Vinod and Al-Futtaim for setting new benchmarks for IKEA Global business by introducing smart digital concept such as Wardrobe Studio.

"The UAE is a very important market for IKEA and Al-Futtaim has introduced good business strategy to incorporate local culture and tradition in wide range of our products. We’re open for knowledge sharing and transformation of business to offer more customized products at IKEA," he said.

Complete Sleep range

Jon and Vinod both are of the view that sleep is crucial to well-being, and IKEA's complete sleep range helps customers in the UAE create better sleep environments.

"Our recent study revealed that nearly 60 per cent of people experience a sleep deficit, highlighting the importance of addressing sleep quality. While multifunctionality remains key - with 80 per cent of respondents viewing their homes this way - the need for restful, restorative sleep has taken center stage," they said.

IKEA's complete sleep range introduces six essential solutions for a better night's rest, grounded in an in-depth sleep study.

To improve air quality, the FÖRNUFTIG air purifier with a particle and optional gas filter removes odours, pollen, and pollutants. For comfort, the VALEVÅG mattress provides firm support with pocket springs and comfort zones, ensuring even weight distribution.

The VAPPEBY speaker lamp helps create a relaxing atmosphere, while the TÖVÄDER night light offers a soothing glow in five colours for children's bedtime.

"The PAX wardrobe system promotes a clutter-free environment, and the NATTJASMIN duvet cover set, made from a cotton/lyocell blend, regulates temperature for a comfortable sleep. These solutions reflect Al-Futtaim IKEA's dedication to enhancing sleep quality across the region," according to Jon.

Commitments to sustainability

At IKEA, Vinod said sustainability is a core commitment, not a trend.

"Our ambitions for 2030 is to inspire and enable people to move towards healthy and sustainable lifestyles by making heathy and sustainable living a desirable choice that is affordable , attractive, and accessible for as many people as possible. In the UAE, we're driving this forward with several initiatives.

"The new Fujairah store exemplifies this commitment, with 47 per cent of its 4,000 products being sustainable, we are helping our customers lead a more sustainable life," he said.

He said LEED Gold certification is also on track, highlighting 10 per cent lower energy consumption, 55 per cent water savings, and improved air quality.

"Likewise, Dalma Mall offers 5,000 products, with 32 per cent being sustainable, tailored to the community's needs. These initiatives showcase our dedication to making sustainable living affordable and accessible," he said.

Since 2016, IKEA has made significant strides in reducing energy consumption across its UAE stores. The stores in Dubai has achieved a 48 per cent reduction, with 56per cent of its electricity now sourced from solar power.

In Abu Dhabi, energy consumption has decreased by 47 per cent, although solar energy has not yet been introduced. Overall, across the UAE, IKEA has managed a three per cent reduction in energy consumption, with 25 per cent of electricity generated from solar energy, according to Vinod.

"IKEA Festival Plaza reached zero food waste to landfill in 2024 and has reduced 338 tonnes of CO2 emissions so far. The food waste is converted into grey water that is treated and reused in the cooling towers. This is IKEA's commitment to transition towards a circular business," he said.

Business transformation

In reply to a question about an increase in store and online visitation trends in the UAE compared to last year as well as factors driving this growth, Vinod said there is a steady increase in footfall to IKEA stores across the UAE.

"Yes, we've seen a positive increase in store visitation in the UAE compared to last year, with a 2.9 per cent rise in foot traffic. This steady growth reflects our continued efforts to enhance the in-store experience and offer a wide range of affordable solutions," he said.

"Additionally, while our in-store visitation has increased, our digital platforms have faced some challenges, reflecting shifts in customer behaviour. We're actively addressing these trends by enhancing the online experience to ensure greater convenience and accessibility, making it easier for customers to shop for their home furnishing needs."

"Our click-and-collect service has further facilitated this trend, allowing customers to easily order online and pick up their items in-store, combining the best of both shopping experiences," he said.

Employee training

Vinod said employee training is a key element of IKEA's success, particularly as "we adapt to new challenges" in sustainability, digital transformation, and customer service. "In the UAE, we're equipping our team with comprehensive training programmes designed to meet these evolving demands," he said.

"We want to empower co-workers to apply commerciality, entrepreneurship, and efficiency within their roles through our Commercial training program. They learn to leverage insights to drive sales growth and long-term profitability, ensuring they contribute meaningfully to our commercial team."

"Through their time at IKEA, our co-workers spend time in understanding and discovering the IKEA concept. In this program, employees gain a deep understanding of what makes IKEA unique, including our values, culture, and commitments. This training ensures that every team member can apply the IKEA Concept in their daily work, aligning with our global standards," according to Vinod.

He said IKEA Sales Competency Programme focuses on increasing the expertise of its sales teams, enabling them to drive local market growth, maximise sales, and become better retailers overall.

"Additionally, the IKEA Food Training Plan helps our food and beverage coworkers engage in active selling, keep customers satisfied, and implement new initiatives that enhance the overall IKEA food experience. By investing in these targeted training programs, we ensure our employees are prepared to meet the challenges of sustainability, digital transformation, and delivering exceptional customer service in the UAE," Vinod concluded.