IKEA wants to grow online, but not by scrapping its shipping costs, as free home delivery does not exist, argues IKEA CEO Jesper Brodin.
In an interview with De Tijd, the top executive reveals that IKEA will deliver faster in the future. Consumers can choose next day or same day delivery. To this end, IKEA is expanding the warehouse area of some stores.
Transparency
However, consumers will continue to pay for it. Now shipping costs range from 2.99 to 114 euros. " Free deliveries do not exist," says Brodin. "Nobody brings stuff to your home really for free. Either you include the cost in the price of your product or you charge a surcharge. We transparently do the latter."
Lowest price in shops
To the argument that big players like Zalando do pay for deliveries themselves, cutting into profits, the top executive says: "That's true, but we have decided that we won't go for free, because then we will punish the customers who come to our shops. That's where the lowest price will always be found."
Electric transport
IKEA is switching to electric Transport in the coming years. By 2025, it will deliver all furniture using electric vehicles. "This is not a do-goodery," says Brodin. The top executive calls it an investment that is "slower to deliver a return". "The biggest threat to our business model is that we are in denial about the climate. I am a believer in electric driving. Now it is expensive, but soon it will be expensive not to. Faster than people think. And if we are wrong about that, that's fine with me."
