A robust delivery infrastructure is paramount in the delivery space, and it’s again showcased with Ikea’s latest delivery development in the UK.
The furniture company has recently opened its hundredth mobile pick-up point in the UK, collaborating with Tesco, the country’s largest supermarket chain.
Ecommerce News reports that almost 40% of Ikea’s UK sales come from the online channel.
This is a testament to the growing trend of online shopping for essential household items and larger furniture.
It also points to a strategic decision from the retailer to enhance customer convenience and accessibility.
Nex-day pick-up service
In 2022, Ikea and Tesco started off with next-day pick-up services. The pilot project soon turned out to be a success. The initiative was rolled out across the UK.
In its latest business move, Ikea plans to double the number of mobile pick-up points to 200.
The service comes free of charge, but for all orders that reach over US$130 (100 pounds), there is a small charge.
Expansion strategy
The UK’s furniture market is expected to grow by more than 3% compound annual growth rate until 2029. According to data by Mordor Intelligence, the industry is worth nearly US$19 billion and is expected to grow to nearly US$22 billion by 2029.
The expansion of Ikea’s pick-up points in the UK is a strategic response to changing consumer behavior. Customers want more convenience and accessibility.
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The demand and expectation for fast deliveries are growing. If the food and fashion industries are anything to go by, retailers will have to increase their delivery offerings to stay competitive.
The UK’s demand for food delivery is at an all-time high. Deliverect’s study shows that 40% of people in the UK get up to three food deliveries a week. That’s 7% more than pre-inflation.
In the retail sector, there’s a strong demand (56%) for quick deliveries and click-and-collect options. Customers are also demanding same-day or next-day delivery.
Philip Hall, CommercHub’s managing director for Europe, told Fashion Network, “Retailers lagging behind on speedy delivery need to re-prioritise.”
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Photo credit: Canva
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Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
