IKEA, the Swedish home furnishings company, is set to open its first physical branch in the Philippines come 2021. Now, fans of IKEA can rejoice because the giant has just announced the opening of their online store, months prior to its physical counterpart.
A press release from IKEA Southeast Asia and Mexico said, “The company is bringing Swedish home furnishings and meatballs to millions of more people in the coming year as it enters both Mexico and the Philippines, with online shops opening up months before the physical stores in both countries”.
According to the official IKEA Philippines website, eCommerce will become an integral part of IKEA in the country to make it easier and convenient for customers to shop. Following the loss of SGD 1.1 billion in turnover from IKEA Southeast Asia and Mexico due to the COVID-19 pandemic, it was also due to this that IKEA decided to accelerate its digital transformation. Interest in home furnishings surged during the lock-downs, the press release added.
Managing Director of IKEA Southeast Asia and Mexico, Christian Rojkjaer said, “At a time of urgent need, people turned to IKEA to set up home offices, study corners, outdoor living areas, and functional kitchens. Many realized that home really counts, and it’s worth investing to make our living spaces comfortable, functional, and beautiful”.
The press release also stated that the company’s nine IKEA stores in Southeast Asia reported a 7.4% drop in sales from last year after closing for 2 ½ months. But with e-commerce operations happening for three of those stores for an entire year, IKEA was able to largely continue selling during long closures.
Come to the end of the year, thousands of more than 525,00 online orders were made. This brought in SGD 135 million in online sales, aiding the company back on its feet. For IKEA, the online shop is another milestone.
And in partnership with the Philippines specifically, this is the second milestone after reports of the country’s physical store to be the largest IKEA in the entire world. The IKEA to be erected in Pasay City, after all, was said to be designed from the beginning to house an e-commerce fulfillment operation and a customer contact center.
At present, there is no specific date announcing the online store’s launch. The only assurance for Filipinos looking forward to shop is that it will definitely come months before the physical one. So get those wallets ready everyone because your IKEA cart is gonna look full real soon.