When people north of Toronto visit Ikea91裸聊视频檚 store in Vaughan, Selwyn Crittendon says it will be hard to tell there91裸聊视频檚 a transformation underway in the bowels of the building, away from the maze-like aisles leading customers through the showroom.
It91裸聊视频檚 in those hidden spaces that the Swedish home goods and furniture retailer is installing dedicated loading bays so staff don91裸聊视频檛 have to wheel orders out a side door and lift them onto trucks, said Ikea Canada91裸聊视频檚 chief executive officer and chief sustainability officer.
91裸聊视频淔rom a consumer perspective, you won91裸聊视频檛 notice so much of the change,91裸聊视频� said Crittendon, who has spent roughly three months on the job he took after about 20 years at Ikea U.S..
But his hope is that shoppers and staff eventually notice the effects of the invisible changes as orders arrive faster and take much less grunt work.
The store91裸聊视频檚 transformation is only one of the initiatives the company has underway to boost efficiency across its supply chain. Other stores will get the same revamp as Ikea Canada pours $400 million into overhauling its fulfilment networks in the Greater Vancouver and Toronto areas.
That builds on a recently opened warehouse in Beauharnois, a southwestern Quebec city, Ikea recently opened.
The Beauharnois facility is the first Canadian distribution centre Ikea opened in the last 30 years 91裸聊视频� and it91裸聊视频檚 quite different from those that came before it.
That91裸聊视频檚 because the facility is abuzz with automated systems that deliver palettes of goods from up to 20 levels high to workers who handpick items and sort them into orders.
91裸聊视频淲hat they91裸聊视频檙e doing in terms of number of orders that are pumping out of that distribution center is simply amazing,91裸聊视频� Crittendon said.
Across Ikea91裸聊视频檚 entire Canadian network, 1.61 million orders were delivered between September 2022 and August 2023. Another 602,260 orders fell under the company91裸聊视频檚 click and collect program, which allows customers to browse and buy online but pick up their purchase in store.
The company said about 28 per cent of its retail sales come through its online channels.
But convincing customers these days to make purchases can be a tougher sell. High inflation and interest rates are weighing on shoppers, including many who have lost their jobs through a spate of layoffs or are worried about costly mortgages cutting into other areas of their budget.
91裸聊视频淏etween our co-workers and our customers, they91裸聊视频檙e screaming about affordability,91裸聊视频� said Crittendon.
91裸聊视频淚t91裸聊视频檚 really, 91裸聊视频楬ow much money do we have after we pay for the things, whether it be our housing, our groceries, do we have discretionary spending then?91裸聊视频�91裸聊视频�
Though Ikea has long had a reputation for prices that undercut competitors, Crittendon said the company91裸聊视频檚 approach to affordability 91裸聊视频渋s not about just selling goods.91裸聊视频�
Instead, he sees Ikea91裸聊视频檚 place as finding solutions to pocketbook problems. That means selling everything from motion-sensing taps and LED lightbulbs that save water and electricity to designing more products that fit into micro-condos and other small spaces Canadians are fitting into to make real estate affordable.
Helping with affordability also includes offering more robust financing options on purchases.
The company has a deal with buy now, pay later company Afterpay that allows shoppers to split purchases valued between $50 and $1,000 into four interest-free payments. There91裸聊视频檚 also a new program backed by RBC that offers one-year, zero-interest loans.
The focus on affordability helped Ikea Canada earn $2.9 billion in its latest fiscal year, up 10.9 per cent from the prior year. It was coupled with store visits increasing by 6.3 per cent to 28.6 million.
Among those heading to stores was Crittendon, whose first act in Ikea Canada91裸聊视频檚 top job was to visit all 16 stores in the chain91裸聊视频檚 Canadian network.
He wanted to find a round of 91裸聊视频渉omework91裸聊视频� 91裸聊视频� changes he could order to better support Ikea Canada91裸聊视频檚 7,200 staff or ease the pain points shoppers face.
Getting schooled on their needs took him to the hulking spaces Ikea was first known for along with its newer gems: condensed urban stores like the one in the heart of downtown Toronto. They feature less stock and smaller showrooms but keep shoppers from trekking to larger, farther locations.
Asked whether Ikea Canada will focus on adding more of these types of stores to its network, Crittendon said it isn91裸聊视频檛 about prioritizing one kind over another.
91裸聊视频淢y curiosity is more about, what does a customer need? 91裸聊视频� It could be our standardized stores that you91裸聊视频檙e so used to like (Ontario91裸聊视频檚) Ikea Burlington, Vaughan, Etobicoke and North York, or it could be smaller footprints like the stores Ikea Scarborough and Ikea (Toronto Downtown),91裸聊视频� he said.
91裸聊视频淏ut I think in the future, I91裸聊视频檓 going to spend a lot more time understanding what our consumers91裸聊视频� needs are.91裸聊视频�
