Now there are safety concerns, CA Notice at Collection and Privacy Notice, http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. Sign up for free newsletters and get more CNBC delivered to your inbox. Both initiatives re-envision the lifecycle of Ikea furniture … Ever-evolving and experimenting, Ikea has lately started testing some surprising new business models: renting out and buying back their own furniture. All Rights Reserved. Even IKEA is a subscription service now.. Please also read our Privacy Notice and Terms of Use, which became effective December 20, 2019. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Want a better video chat background?

The Swedish furniture retailer is opening smaller stores in downtown areas and working to improve customers' delivery and online sales experiences. The rentals are also designed to appeal to more commitment-phobic customers who might not be ready to drop hundreds of dollars on a couch or a bed. We want to hear from you. Read the full story in the Financial Times. Ikea will start leasing furniture as it moves to develop "scalable subscription services" to prolong the life of its products, the Financial Times reports. Get this delivered to your inbox, and more info about our products and services. "You could say leasing is another way of financing a kitchen," Loof said. Customers will be able to return their furniture at the end of the leasing period and, if they want to, pick something new. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices  Ikea will start leasing furniture as it moves to develop "scalable subscription services" to prolong the life of its products, the Financial Times reported. Ikea will start leasing furniture as it moves to develop "scalable subscription services" to prolong the life of its products, the Financial Times reported. The furniture giant is planning on test-driving a new program that allows customers to rent desks, beds and sofas, reports Reuters. What the World’s 25 Best Workplaces have in common, China approved early distribution of a COVID vaccine to tens of thousands. Ikea is also considering a spare parts business for consumers to replace parts like screws for furniture that are no longer in stock. “You build in an economic incentive, you build in a consciousness with consumers that they don’t have to own it, but own this collectively in the world and recycle it.”, 15 gorgeous backdrops for your next Zoom call. Nonetheless, Ikea is not the only interiors company attempting a rental model. “If the last decades were about mass consumerism, now we are getting towards mass circularity,” said Brodin, who also shared that Ikea is investigating new cellulose materials for more eco-friendly products. © 2020 CNBC LLC. Market data provided by Interactive Data. The rentals are also designed to appeal to more commitment-phobic customers who might not be ready to drop hundreds of dollars on a couch or a bed.

We proudly offer no cost delivery to all our customers, which is usually a hidden fee when you buy furniture… An employee walks in a store of the Swedish furniture giant Ikea in Madrid on October 10, 2018. Both initiatives re-envision the lifecycle of Ikea furniture as a loop rather than a static straight line. Terms & Conditions. Offers may be subject to change without notice. "When this circular model is up and running, we have a much bigger interest in not just selling a product but seeing what happens with it and that the consumer takes care of it.".