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Like many other Tampa Bay residents, I was excited to learn a while back that IKEA was opening its first store in the area this month. Unlike most of the others, however, I wasn’t just excited about the exciting merchandise, the great prices, the fantastic displays, the outstanding sales help, or the delicious Swedish meatballs. Rather, as observer of the retail scene, I was glad that I don’t have to go to New Jersey or Cincinnati to take a look at what this retail innovator is doing appeal to its customers. One of my students in my graduate marketing classes at Schiller International University gave me a special invitation to the pre-grand opening preview this past weekend so I could take a look before the crowds started camping out for the early bird grand opening. (Yes, they even have a customer friendly sign outside the front door on camping suggestions and rules.)
Once inside, I realized again why this chain defies the doldrums that face all retailers—and especially furniture stores—these days by posting over a 7% sales increase last fiscal year bring their sales to over 21.2 Billion Euro annually. They have figured out how to not only make shopping fun, but also convenient for their customers. Walking through the over 350,000 square foot store, I couldn’t help repeating the same phrase at every corner: “What a great idea!” (I stopped counting at 30 repetitions) as I would see yet another innovation in merchandising, displays, or signage. To the point, where I said to my family: “They should call this place IDEA instead of IKEA.” It is one great consumer convenience concept after another and the prices just seem to be outstanding as well. Sales help??. Of course, this is a pre-opening, but from the over 50 parking lot attendants to the myriad of smiling, helpful yellow shirts in the store, it sure beat the vulture-like sales people in most furniture outlets these days.
I took the time to ask several associates about how they liked the store. The response was always “This is a great company.” They were as excited as we were with the store—and it wasn’t just because they were just some of the 400 lucky people who were selected to work there out of over 2500 applicants. This is a brand that gets it and has been getting it in Europe for decades and here in the US for just a few years. They have a reason for being (consider today’s shopping patterns for furniture). They compete on value, not just price. (Wal-mart prices with Rooms-to-Go value.) They’re convenient. (I thought the small space rooms were especially timely and easy to shop for today’s downsizing population.) And, finally, they make it fun to shop. Not just the magicians and balloon artists for the grand opening, but the whole experience from the store maps to the kids activities to the wonderful lunch buffet (loved those meatballs), this is a great place to spend a Saturday.
They get it. And if more retailers would take a few hours out of their slumping stores and visit the IKEA near them, they would see that retail can be fun—and profitable.
Shoppers filled the new IKEA even before the Grand Opening--and it was fun.
