Reimagining Retail with IKEA Digital Transformation & New Store Formats

 

In the swiftly evolving retail industry, the conversation around digital transformation and retail technologies is more urgent than ever. Amid this tech-driven revolution, IKEA is pioneering a remarkable journey. The stakes are high, as IKEA aims to shift from being primarily a physical retailer to incorporating a substantial omni-channel presence. As of 2016 only 2% of IKEA’s business was omni-enabled, now in 2023 it has leaped to 23%.

The central question being answered here: How is IKEA digitally transforming its business model and store formats to adapt to evolving consumer needs?

On this episode of Retail Refined with Melissa Gonzalez, we bring you an insightful discussion with Parag Parekh, the Chief Digital & Technology Officer at Ingka Group, IKEA. The conversation navigates through IKEA’s digital transformation journey, evolving store formats, and the adoption of emerging retail technologies.

Key takeaways from the discussion include:

  1. IKEA is undergoing three primary transformations: transforming physical stores, enabling omni-channel experience, and providing additional services to enhance customers’ life at home.
  2. IKEA’s physical transformation involves moving from big blue boxes on city outskirts to smaller formats within city centers.
  3. The company is exploring immersive room technology in stores to enrich the customer experience.

Parag Parekh brings a wealth of experience in the field of digital transformation, currently leading IKEA’s digital initiatives as the Chief Digital & Technology Officer of the INGKA group, which one of the largest retail companies in the world and operates a large number of IKEA stores. His work primarily revolves around driving the digital transformation for IKEA, focusing on everything from in-store Wi-Fi to e-commerce and back-office operations.

Follow us on social media for the latest updates in B2B!

Image

Latest

Healthcare trends
2025’s Hottest Healthcare Trends with David Willis, Principal with ECG
March 28, 2025

Healthcare organizations have faced significant challenges over the last five years due to the lasting financial and operational impacts of the COVID-19 pandemic, widespread labor shortages, and rising costs of care delivery. The pandemic forced hospitals to prioritize crisis response over long-term strategy, leading to deferred investments, workforce burnout, and financial strain. Now, with many…

Read More
Microschool
With ESA Demand Outpacing Supply, How Can Utah Expand Microschool Access?
March 28, 2025

Across the country, education savings accounts (ESAs) are reshaping how families think about schooling—but in Utah, surging demand is outpacing available options. Last year, roughly 27,000 students applied for Utah’s ESA program, but only 10,000 scholarships were available. While parental interest in alternative education is booming, a new bottleneck is emerging: the supply of…

Read More
freight guards
Can a Single FreightGuard Review End Your Trucking Company? Sadly, Yes
March 27, 2025

As the freight industry grapples with the lingering impacts of a market downturn and rising digital vulnerabilities, a critical question has emerged: how can trucking companies defend their reputations in an era where a single online review can kill a business? In 2023 alone, over 88,000 trucking companies shuttered, and for many, the catalyst…

Read More
workforce in security
Where Security Meets People: Building a Better Industry Through Workforce and Inclusion
March 27, 2025

The security industry is facing a moment of transformation. Amid rapid technological shifts and workforce challenges, companies are realizing that talent — recruiting it, developing it, and retaining it — is now central to long-term success. At the same time, long-overdue conversations around inclusion, representation, and culture are gaining momentum across the sector. According to…

Read More