The company IKEA is closing one of its stores in Sweden for the first time in over 40 years. As reported by the Swedish business newspaper Dagens Industri, the furniture giant is preparing to cease operations at its large store in the city of Borlänge.
The company, which changed its CEO last year, announced that instead of the closing large store, a new one will be opened. It will have a smaller format, adapted to what IKEA calls "the retail of the future."
The closure of an IKEA store is an extremely rare occurrence for Sweden. The last time the company closed a store in its home country was more than four decades ago.
Moreover, the store in Borlänge is relatively new by the company's standards: it opened in 2013 after years of negotiations and preparations.
The company links the closure to structural changes in consumer behavior. According to IKEA Sweden, more than 20% of sales now come from online channels, and many customers begin the purchasing process in digital format even before visiting the store or arranging for delivery.
Currently, about 230 people work at the Borlänge store. The company told SVT that a smaller store typically requires fewer staff.
The company's announcement has caused political discontent in the Borlänge city hall. The chairman of the municipal council told SVT that the authorities were informed only shortly before the public announcement of the decision. According to him, the municipality spent significant resources and time to ensure the opening of IKEA.
Leave a comment