While so many furniture manufacturers are struggling, uncertain economic times have not affected IKEA adversely. Recently IKEA posted a 10.3% jump in its net profit for the year ending Aug. 31.
So what is IKEA doing right? Several things. It has improved how the furniture is manufactured and then flat packed, saving money on production and transport costs. Then, the savings have been passed on to consumers, as during this period IKEA also brought its prices down.
While lower prices are certainly bringing people in, the company has also focused on building customer loyalty by rewarding them. There was a party at IKEA stores for BYOF Day earlier this month. Lisa Finnin-Ciccoli, the Local Media Specialist at IKEA told me that traffic was good at my local IKEA store. Customers got free food, a free Life Improvement seminar with national TV host and designer Lisa Quinn, and drawings for shopping sprees.
Then there is the IKEA Family program which offers news of new products, discounts and deals, and the lure of free coffee. Who can resist free coffee?
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