IKEA Is Building a More Sustainable Future with Furniture Rentals, Product Refurbishing, and More
Sustainability is becoming ever more important across all industries. As most companies realize that the planet is at a crossroads in terms of climate change, more and more are trying to find new ways of carrying out their business in a more environmentally-friendly fashion.
Some of the industries which generate a lot of waste are clothing and furniture. These two markets have a high turnover of items, with many ending up in dumps or landfill sites once fashions change and people desire an updated wardrobe or living room.
When it comes to furniture, however, Swedish retailer IKEA has some ideas to cut down on the waste.
IKEA
The famous furniture brand has been making huge roads into sustainability over the last year, and it shows no signs of slowing down.
It recently opened its most sustainable store so far in Greenwich, London. Resplendent with solar panels, rainwater-harvesting facilities, geothermal heating, and 100 percent LED lighting, the new store elegantly demonstrates the company's commitment to environmental friendliness. The store has a goal of running on 100 percent renewable energy and is working towards an outstanding BREEAM (Building Research Establishment Environmental Assessment Method) accreditation along with it.
"Sustainability is at the heart of everything we do at IKEA, and moving to a circular economy is essential if we are to continue to meet people's needs and dreams while staying within the limits of the planet," said IKEA UK & Ireland Sustainability Manager, Hege Saebjornsen. "IKEA Greenwich is a leading example of circular retail in London, and reflects our commitment to make sustainable lifestyles easy and affordable, while also supporting customers to re-use, recycle, or refresh their products."
The store is home to a community garden and Learning Lab - teaching upcycling and repair skills - making it a hotbed for community cohesion and fresh ideas along with sustainability. IKEA is also trialing a textile recycling program in Cardiff, UK, where customers can bring in clothing and bedding to be recycled.
Sustainable Delivery
Another way IKEA is innovating in the field of sustainability is by changing the way it deals with goods which get damaged in transit.
It used to be that any items which suffered damage in this way would simply be thrown away and disposed of. However, now IKEA has teams in each store who are trained to repair these items. The refurbished products are then repackaged and sold to consumers - at a reduced price, of course. IKEA is also encouraging its customers to repair their furniture instead of throwing it out by introducing a range of spare parts to its catalog.
However, an even more exciting sustainability initiative is being trialed in Switzerland. IKEA is experimenting with offering leased furniture to business customers in the country with a view to it being rolled out en masse if it proves successful. While the rentals are being limited initially to desks and chairs for businesses, the brand has suggested it may investigate renting kitchens and other furniture in the future.
"You could say leasing is another way of financing a kitchen. When this circular model is up and running, we have a much bigger interest in not just selling a product but seeing what happens with it and that the consumer takes care of it," said Chief Executive of Inter Ikea, Torbjorn Loof. "In certain markets, such as Switzerland, we're exploring and testing potential solutions and have a pilot project to look into the leasing of furniture, but it's still too early to confirm exactly what this will look like."
Following on from the recent popularity of car leasing as an alternative to purchasing, the rental strategy is another facet of IKEA's effort to design and sell goods which can be repaired, reused, recycled, or resold, and promote services which prolong the life of a product.
This means products can be returned to the brand when it's time for an update, where they can be refurbished and sent out to another customer, keeping furniture out of the landfills while simultaneously helping customers stay on trend.
Final Thoughts
Sustainability should be a core component of all business strategies moving forward, and it's great to see a giant brand such as IKEA leading the way with such a range of innovative and impactful initiatives.
Sustainability is set to be a hot topic at Retail Delivery Connect 2019, taking place in August at The Westin Fort Lauderdale Beach Resort, FL.
Download the agenda today for more information and insights.