Ikea plans 7,500 job cuts, but will hire 11,500 for online push
Business Live - Nov 23rd 2018, 09:00
Swedish furniture giant Ikea said that it plans to cut 7,500 jobs worldwide by 2020, mainly office jobs, as it re-organises to focus its business on e-commerce and smaller shops in city centres.
The job cuts affect almost 5% of staff at Ingka Holding, Ikea’s parent group. Ikea is its biggest brand with 367 stores in 30 countries and 160,000 employees.
The decision to cut jobs was “based on how to lead a more simple, effective and efficient” business. “We have duplicate work throughout the market,” Ingka retail manager Tolga Öncü told AFP.
Jobs will be cut across the globe but stores and distribution units will not be affected, he said.
Ikea, via Ingka, will, at the same time, recruit 11,500 people in the next two years to meet the company’s “digital capabilities” and its plans to open about 30 new stores.
The company, famous for its flatpack DIY furniture, has been opening city-centre shops in response to changing lifestyles since fewer people own cars.
“The retail landscape is transforming at a scale and pace we’ve never seen before. As customer behaviours change rapidly, we are investing and developing our business to meet their needs in better and new ways,” Ingka CEO Jesper Brodin said in a statement.
In October, Ingka reported sales of €34.8bn for its 2017-2018 reporting year, up by 2% from the previous year, which it attributed to stronger online sales and store openings.
Ikea stores received 838-million visitors in 30 countries, 3% more than a year earlier. The company’s web page meanwhile, had 2.4-billion visitors, up by 10%.
The group also said its “click & collect” service, which enables consumers to order online and pick up their products in store, and “task rabbit”, which offers buyers at-home assembly help in the US and Britain, were developing well.Business Live
Truworths profit at nine-year low as profit plunges over 70%
16/08/2019 - 11:52
Shares in Truworths slumped to a nine-year low on Friday morning after the fashion retailer reported a 74% slide in profits amid difficult trading environments in SA and the UK.
UnionPay cards - the largest card scheme in the world - now accepted at all Pick n Pay stores across SA
16/08/2019 - 11:11
UnionPay International (UPI) has announced significant progress in the South African retail payments market through their co-operation with Pick n Pay and Absa Bank. Through a tripartite co-operation agreement, Pick n Pay, a major food, clothing, and general merchandise retailer, is now enabled to accept UnionPay cards at all of its till points across its approximately 1,800 stores countrywide.
Pernod Ricard SA to centralise operations with Johannesburg move
16/08/2019 - 10:27
In a move set to enhance cohesion, collaboration and efficiencies, Pernod Ricard South Africa (PRSA), a co-leader of wine and spirits worldwide will officially relocate its Cape Town offices to Woodmead, Johannesburg by 31st December this year.
Why equipment finance makes sense for your SME
15/08/2019 - 15:26
Every business, be it in retail, agriculture, and even tech, simply cannot operate without the necessary equipment to run their operations. Equipment can be costly, and that is why equipment finance for small businesses appeals to most small-medium business owners.
With banana leaf lamps, H&M backs firms promising social change
15/08/2019 - 10:31
With lampshades made by Indian women and trays from East Africa, H&M said that it had become the latest retail giant to back businesses with a mission to do good, as pressure mounts to end throwaway consumerism.