Potential for profitability

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Although IKEA does not profit from the food it sells in its stores, it does attract more customers who come in to buy meals and leave with impulse-bought furniture. IKEA uses advertising and irresistible offers to attract more customers to its stores. The company has cut its workforce to reduce its wage bill and use the money to make more furniture, increasing its sales and profits.


While IKEA is thriving in the retail market, the same cannot be said for the e-commerce sector. Aggressive competitors have hampered the company’s efforts to change and innovate. IKEA needs to innovate and come up with disruptive solutions to enable faster and more efficient delivery than its competitors. The company also needs to improve its refund and return process.

IKEA has not yet been able to harness the potential of IT and e-commerce and has continued to underperform employment data in North America in recent years. The company needs to invest in market research to understand its different customers and how to use different strategies in other regions. Customers do not need to present physical receipts to request approval for their returns. IKEA needs to ensure that its IT systems are up to date to improve the shopping experience.