Ikea's new boss Javier Quiñones: Rapid change must be catalyst for innovation

This week is no different as we release our annual business results, looking back at our performance, progress and successes for the financial year gone by.

Despite a challenging retail environment, we continue to grow and transform our business.

In 2017/18 we opened two new stores in Exeter and Sheffield. In October, our first city centre Planning Studio opened its doors on London’s iconic Tottenham Court Road, the country’s capital of home furnishings and design.

We have launched our updated People and Planet Positive strategy to set our new sustainability goals.

And all whilst delivering our seventh year of consecutive growth here in the UK with total sales of £1.965bn – an increase of 5.9% year on year, helping us increase our home furnishings market share to 8.4%.

Past, present and future

For the past 75 years, Ikea has redefined the home furnishings market with our well-designed and affordable products. Our business model, based on customers visiting our stores, collecting their own furniture and assembling it themselves, has helped Ikea grow into the largest home furnishings retailer in the world.

“It would be hard to ignore the impact that changing consumer behaviour is having on the retail sector, and we are not immune”

Javier Quiñones, Ikea country retail manager for UK and Ireland

But while this model has presented us with a successful foundation, our entrepreneurial spirit means we’ve always recognised the need to adapt to make sure we live up to our business promise to create a better everyday life for the many people.

As our founder, Ingvar Kamprad, wrote in the 1970s in The Testament of a Furniture Dealer: “By refusing to accept a pattern simply because it is well established, we make progress.”

This couldn’t be more relevant now. It would be hard to ignore the impact that changing consumer behaviour is having on the retail sector, and we are not immune.

One big factor driving this change is the way we now live, shop and interact with brands. I only have to look at my daughters and how they interact with technology to understand that the next generation are already operating in a different way, with a new set of expectations.

We are witnessing a rapid rise in ecommerce and increased urbanisation. By 2050, as many as 70% of people across the globe are predicted to live in cities.

These trends come as no surprise. With so many of us owning a smartphone, convenience and bespoke shopping experiences are now the norm, especially when you can buy a bookcase on the bus or a new outfit from the comfort of your sofa.

On the flipside, when it comes to planning for larger, more complex purchases, we still seek expert advice. This is why we opened on Tottenham Court Road – our first high street location and part of our growth strategy to increase accessibility and relevance in city centres.

Which brings me to the big question: Is this the end of traditional retail as we know it?

Experience and convenience

Stores will always have an important role to play when it comes to inspiration and touching and feeling the product. But the overall offering needs to evolve and become an experience that consumers value.

From a personal perspective, a busy family life with two young children means there are times when I’m looking for the convenient and more accessible option, so online shopping is invaluable.

If we’re going to shop on the high street or out of town, it needs to be fun to visit and ideally offer something for the whole family.

“If we choose to view this period of change as an opportunity to re-think and re-affirm our purpose, our products and our service offerings, this moment in time will become a catalyst for us to innovate and ultimately better meet the needs of our customers”

Javier Quiñones, Ikea country retail manager for UK and Ireland

Instead of replacing the traditional model, we need to build on it and offer additional services that respond to changing consumer lifestyles.

As retailers, we need to constantly ask ourselves: are we offering what our customers want, when they want it and where they want it?

If we choose to view this period of change as an opportunity to re-think and re-affirm our purpose, our products and our service offerings, this moment in time will become a catalyst for us to innovate and ultimately better meet the needs of our customers. This is exactly what we aim to do at Ikea.

As long as retailers are prepared to leverage the advances in technology and adapt to the changing nature of consumer needs, the brands we know and love will continue to play an important part in our time-precious lives.

I’d like to finish with a quote from Ingvar. “A company which feels that it has reached its goal will quickly stagnate and lose its vitality. We will move ahead only by constantly asking ourselves how what we are doing today can be done better tomorrow. The positive joy of discovery must be our inspiration in the future too.”