Listen Now: Ikea Announces Big Changes: For Better or For Worse?
Ikea is going the way of most major retailers, and undergoing some major changes.
The Swedish retail giant has announced its biggest and boldest restructure ever, so what can you expect to see change?
Ikea plans to open thirty new stores in city centers, which is a change from the old plan of being on the outskirts. The first store will open in Paris, followed by New York, Los Angeles and San Francisco.
The company is also reducing the number of products it displays on the floor and will dedicate more space to mock ups of living rooms, kitchens and bedrooms.
Ikea is also investing in more delivery options to make the process easier, especially for people who can’t make it to the store or don’t have a car.
But here’s the bad news: the change means about seventy five hundred jobs in communications, human resources and other administrative positions are being cut. Instead, Ikea is looking to hire people who can help with delivery options, upgrade its online presence and improve store experience.
Change can be good, especially if it pays off.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.
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