Australia is set to get its own Ikea online retail store and the move is expected to push the profits beyond $1 billion. The company will first be building an online portal within the next six months before coming up with a permanent digital outlet in the first half of 2017.
The online store is expected to be Ikea’s largest retail outlet which will provide a further boost to its already skyrocketing sales.
The company will begin testing different fulfilment models in different urban locations after establishing the online portal. The reports said the models will include “a small format Ikea store and pick-up point, an unbranded pick-up point, and a third party depot” which is like the one already operating in Tasmania.
According to Ikea Australia’s Managing Director David Hood, the online store has the potential of becoming the company’s largest store in Australia. The sales in Australia is expected to rise by 20 percent this year, which will cross the $1 billion mark for the first time, Stuff.co.nz reported.
It is the largest and the most progressive homeware retailer in the world. However in e-commerce, the company has chosen for a maze-like store to coax consumers into compulsive purchases.
Hood is positive that the online store in Australia will be able to generate growth similar to that of the UK, which is the company’s largest outlet in the country. “It’s a huge growth engine in the UK but it’s not taking away from stores,” Daily Mail quoted him as saying.
He added that by October, the company is expected to finalize the template for the store and by next April, it will be up and running. “Hopefully, by October we could clarify something and then by April have something open,” he said.
Of the 28 countries in which the company has set up retail stores, 13 have online outlets. However, it has managed to generate only $1.5 billion in 2015, which is just three percent of the global sales.