13,818 $m
Home Furnishings
With an intense focus on customer experience and value, IKEA reported an outstanding 9.5 percent sales growth and introduced 2,000 new products to its stores in 2012. Working to maintain a relevant instore experience, IKEA enhanced delivery, assembly, and installation options and opened 11 stores in nine countries, including its first South American store in the Dominican Republic, and released plans to open at least 200 stores within the next eight years. Now operating in 40 countries, notably gaining presence in Asia and the Middle East, the brand also became one of the few businesses to experience growth in Europe in 2012. The brand moved fast in the face of scandal when a supplier was found to be using horsemeat, a supply chain crisis that forced meatballs off shelves in more than 25 countries. Identifying a weak point in its online presence, IKEA has announced plans to expand its e-commerce availability beyond the 10 countries where it is currently available. In addition to engaging customers digitally, IKEA is addressing internal brand engagement with plans for a new “people strategy” for its 139,000 employees, building on its values, clearly explaining the brand’s objectives, and introducing key performance indicators. With Millennials making first-home purchases and housing markets rebounding in key territories like the US and UK, IKEA has a great opportunity to continue to increase loyalty and brand value, in line with its mission to provide a “better everyday life.”