IKEA is making an unprecedented cost-cutting move in Norway: 'Never closed anything before'

By On August 29, 2018

IKEA is making an unprecedented cost-cutting move in Norway: 'Never closed anything before'

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  • IKEA is shutting down three service centers in Norway.
  • The furniture giant is responding to falling profitability in the market by slashing costs by 10 percent.
  • IKEA Norway's Country Retail Manager says it was a hard decision to make, but their "last resort".

”We will close all the service centers in Norway. It was a hard decision to make, as we’ve never closed anything before,” says Clare Rodgers, Country Retail Manager at IKEA Norway, to Dagens Næringsliv.

It’s only been three years since the furniture giant set up service centers in Tromsø, Ålesund and Skøyen in Oslo. But in a measure to tackle lower profitability, IKEA Norway will slash costs by 10 percent and, as a consequence, close all of them.

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The sites were part of an experiment to create a shopping experience that blends the physical and online world. Customers were able to get a closer look at parts of the assortment, the rest on in-store touch-screens, and help with placing orders online.

After evaluating, IKEA is pulling the breaks as this concept never took off.

Those 50 employees who are affected will be offered other jobs within the group.

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“We are careful with decisions that affect employees, but this was our last resort,” says Clare Rodgers to Dagens Næringsliv.

Source: Google News Norway | Netizen 24 Norway

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