What: Ikea is disrupting its own business model before it is disrupted.

Why it is important: In the face of competition, as well as crises, retailers need to experiment and test, even if this challenges their traditional business model. Ikea is doing it, Walmart is doing it, Amazon is doing it, as is Alibaba; department stores need to do more of it.

The Financial Times looks at the Ikea city centre Planning Studio format as one example of the relentless experimenting taking place at the company. It argues that Ikea is disrupting itself before being disrupted. A lesson for all retailers. The last of the Studio formats to open in Oslo is taken as a case: apart from allowing customers to plan their rooms while seeing the total range of materials and furniture, seminars and events will be hosted at the shop, for example, while the Studio will also offer inspiration through product news and season-related products. The customers can receive help with planning rooms and homes and get inspired by the solutions on display.

Ikea faces increasing competition from online retailers and the Covid pandemic closed up to three-quarters of the stores with group sales falling 4% in the year ending August 2020.

Ikea seeks to disrupt itself before it is disrupted

Related items:

• Ikea: How to keep growing and thriving at the same time
• Responding to Disruption