Ikea Case

Keeping prices low takes a concentrated effort at every stage of production and sales. We are persistent in finding ways to use the economies of scale, better production methods and smart design to keep costs low without affecting the quality of IKEA products. This way of working applies to:

• IKEA stores

• Distribution

• Purchasing

• Industry group

• Developing the product range

• Expert and supporting functions, including IKEA IT, IKEA Communications, IKEA Food Services, and more.

IKEA stores

IKEA stores sell the IKEA product range in room settings and self-service areas and inspire customers with ideas, hints and tips for smart new home furnishing solutions. To keep prices low, the stores buy and transport products in bulk. They’re also located in less expensive areas of their market area. IKEA customers help to keep prices low by picking their furniture up at their store’s warehouse, transporting it home and assembling it themselves.

Distribution

IKEA has 28 distribution centres in 16 countries. These centres supply goods to IKEA stores, and they ensure that the route from supplier to customer is as direct, cost-effective and environmentally friendly as possible. Efficient distribution plays a key role in the work of creating the low price.

Purchasing

IKEA