Ikea looks to expand second-hand furniture offering after test success
Ikea is planning to expand its European marketplace for second-hand furniture as demand for pre-owned goods remains strong.
The decision comes after the Swedish multinational launched two successful pilot projects in Madrid and Oslo - which will be expanded to all of Spain and Norway until August.
"It works - people like it," Jesper Brodin, CEO of IKEA's largest franchise Ingka, told the Financial Times.
"We have decided to expand it from Madrid to Spain, and from Oslo to Norway. In a couple of years, we want to scale it up to all markets in Europe."
Brodin added that the pilot in Madrid and Oslo led to about 200,000 customers visiting the Ikea Preowned website - and a "couple of thousand engaging".
The challenge for second-hand offerings is that they often struggle to turn a profit, although Ikea is currently focusing on positive customer engagement.
The firm offers sellers the option to be paid in store vouchers equal to 15% more than the sale price.
Brodin told the FT that he was "positively surprised" by the number of people opting to receive the vouchers.
Ikea has been working to improve their environmental impact, although green activists say they still have a long way to go.
The firm's commitment to sustainability came under scrutiny after an investigation by Greenpeace accused the company of irresponsible deforestation practices.
Brodin, speaking to Reuters last week, nonetheless argued that Ikea is committed to improving its practices.
"There is still a myth out there that adapting to mitigate climate change will be an economic loss, in IKEA we have found that is absolutely the opposite," he said.
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