View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
April 1, 2007

Ikea: opportunities in the electricals market

Ikea could be next in a long list of retailers to move into the electricals market after Anders Dahlvig, chief executive, said that the company is considering adding electricals to its iconic furniture. In light of electricals' positive market outlook, Ikea's brand strength and its vast store footprints, selling electricals could prove a sound move by Ikea.

By CBR Staff Writer

Ikea is considering a move into the electricals market as part of its global expansion plan.

The strong growth in the electricals market in the past year, fuelled by high demand for flat-panel TVs and the introduction of High Definition ready TVs to stores has made the electricals market highly attractive to non-specialists. Grocers, in particular Tesco and Asda and also catalogue-based showroom retailer Argos, have been quick to ramp up their electricals ranges to capitalize on these opportunities. In addition M&S recently launched trial electricals divisions in a handful of stores.

The continual introduction of new products to market such as next generation DVD players and full HD TVs will keep the market stimulated and maintain growth for the coming years – helping to make this a longer-term opportunity.

However, not all is rosy, and the market should be approached with caution. The UK electricals market is characterized by intense rivalry from specialists, non-specialists and pureplay online players. It is also plagued by perpetual price deflation caused by the continual introduction of new products to market and innovation.

Despite this threat, the sale of electricals would prove complementary to Ikea’s authoritative range of furniture. It would be able to use its vast store footprints to showcase room sets, enhanced further by complementary products, allowing it to present full living room displays.

Crucially, this is about exploiting existing footfall and increasing average transaction values. Ikea has an existing audience with a mindset to improve their homes and to buy into the Ikea concept. Being able to buy additional items from room sets would be a compelling proposition and a useful additional revenue stream for Ikea.

With a strong brand reputation, plentiful space for storage and no need to stock wide ranges, there are few reasons to dissuade Ikea from pursuing this opportunity.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Source: Verdict Research

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.