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Money News

IKEA opens pilot second-hand store in Sweden

STOCKHOLM (Reuters) - IKEA, the world’s biggest furniture retailer, will on Monday open a pilot second-hand store for IKEA furniture in Sweden as part of its efforts to reach its 2030 climate targets.

The store in Eskilstuna west of Stockholm will, after the used furniture is repaired or brushed up in an adjacent repair shop, sell the items at below their initial price, IKEA Sweden’s head of sustainability Jonas Carlehed said.

The goods come from municipal recycling centres in the area, where people can donate furniture.

IKEA has a target to be circular - which includes using renewable or recycled material only, and helping customers prolong the life of their products - by 2030.

It aims to reduce more greenhouse gas emissions than its value chain emits - from the production of raw materials through to customers’ use and disposal - by the same year.

“We are making a huge readjustment, maybe the biggest IKEA has ever made, and one of the keys to reaching (the targets) is to manage to help our customers prolong the life of their products,” Carlehed told Reuters.

He said the store, which is located in a shopping mall focused on recycling and reuse, would be a learning experience for IKEA about the second-hand business and how to attract shoppers.

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“(The mall) has lots of knowledge of customers’ thoughts on second-hand retail, and of what triggers customers to donate products,” he said.

IKEA will evaluate the project after six months and thereafter decide whether to roll it out to more markets, he said.

The store is owned by Ingka Group which owns most IKEA stores and is a strategic partner as well as franchisee to brand owner Inter IKEA.

Ingka Group earlier this month said it was rolling out a buy-back scheme to many of its stores under which people get vouchers in return for their old IKEA furniture which IKEA then recycles, resells in the store, or donates.

Reporting by Anna Ringstrom; editing by Jonathan Oatis

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