Ikea - Overview to SNET.docx

1 case study store layout stores are usually designed

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Case Study Store Layout Stores are usually designed in a one-way layout to encourage customers to see the store in its entirety, as opposed to a traditional retail store, which allows a consumer to go directly to the section where the goods and services needed are displayed. The sequence usually involves going through furniture showrooms. These modelled rooms provide a creative way introduce products and show customers how to piece together an entire room from furniture and products available in store. Customers proceed to a ‘Market Hall’ for smaller items before visiting the self-service furniture warehouse to collect previously noted showroom products in flat pack form. Most stores follow the same layout of having the showroom upstairs with the marketplace and warehouse downstairs. Most IKEA stores offer an "as-is" area just before the cash registers. Returned, damaged and formerly showcased products are displayed here and sold with a significant discount and a "no- returns" policy. Store Location The vast majority of IKEA stores are strategically located in high-density areas to guarantee store traffic. They are often located along main roads to maximize visibility and outside city centers, primarily because of land cost and traffic access. Opening Hours IKEA stores have long opening hours. Many stores are in operation 24 hours a day with restocking and maintenance being carried out throughout the night. Public opening hours tend to be much longer than most other retailers, with stores open well into the evening in many countries. In the UK, almost all stores are open past 8pm. Restaurants and food markets Many stores include restaurants serving traditional Swedish food . Besides these Swedish staples, hot dogs and drinks are also sold, along with a few varieties of the local cuisine. In many locations, the IKEA restaurants open daily before the rest of the store and serve an inexpensive breakfast. Refills of coffee, tea, and soft drinks are, as is traditional in Sweden, free of charge, even in countries where this is uncommon in other restaurants. 2
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Case Study Play Areas Many stores have a play area . Parents can drop off their children at a gate and collect them later. In some stores, parents are given free pagers, which the staff can use to summon parents whose children need them earlier than expected. In others, staff summon parents through announcements over the in-store public address system. Manufacturing IKEA outsources approximately 90% of its manufacturing. Products are designed in Sweden but largely manufactured in developing countries to keep costs down. With suppliers in 50 countries, roughly two thirds of purchasing is from Europe and about one third is from Asia.
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