• Since the launch of the online store, the number of unique visitors was 2,528,431, and the number of orders was 148,395.
• The average order value in the online store was ₴3,393 ($123). Based on the number of orders and the average order value, the magazine calculated the approximate revenue of the company for the year: about ₴503M (approx. $18.4M). For comparison, the sales in the online store Jysk in 2020 amounted to ₴188M (approx. $6.8M).
• In the IKEA online store, Ukrainians most often ordered storage boxes for clothes, hangers Spruttig, and Istad resealable bags.
• For three months of the offline store work, its earnings made about ₴7.2M ($261k), based on the number of orders (8,068) and an average order value (₴890 that is $32).
• The most popular items in the offline store were Spruttig clothes hangers, Oftast plate, and tablet/smartphone stand Bergenes.

How much does the delivery cost

As an example of such delivery, the magazine cites the case of media manager Artur Orujaliev, who wanted to order a salt and pepper shaker on the IKEA website in April 2021. The total amount of his order was ₴298 ($11) with delivery to the suburbs of Kyiv. But he couldn’t choose courier delivery and was offered a truck delivery for ₴1,599 ($58). He canceled the order.

Bronislav Chumak, a Kyiv marketer, had a similar problem: he ordered a chest of drawers for ₴1,200 ($43), and the only option for delivery was a truck delivery for ₴1,599 ($58). This customer decided to place the order and not to waste time looking for the furniture he needed. Journalists of the outlet ordered a cabinet from IKEA, and the door-to-door delivery in Kyiv was ₴699 ($25), and the delivery to the pickup point – ₴59 ($2). However, the latter option is not always available.

For comparison, according to the magazine, the door-to-door delivery of the cabinet from Jysk within Kyiv is free, from Epicenter – as well (excluding fees for lifting), from Rozetka – ₴59 ($2).

Why so pricey

The company responded to the magazine’s question by saying that:

• Such delivery prices reflect the increased operating costs of such a service.
• The company’s logistics partners are Nova Posta Logistic, which works with the warehouse and prepares the orders, and DB Schenker, which is responsible for delivery.

The company also noted that it is “looking for ways to reduce prices, where it is possible,” and promised to expand the network of pickup points.

Kostiantyn Loshnevskyi, CCO of MebelOk.com, in a comment for the outlet, said that IKEA is not ready to work with different operators and delivery formats, trying to find one or two universal solutions. Also, there is a problem with the delivery of large furniture in Ukraine in general, especially if it is a delivery around the country. The logistics infrastructure (warehouses, sorting systems, transport, route loading, etc.) is not well-suited for large furniture. Plus, such deliveries often require furniture lifting and assembly services.

According to Loshnevskyi, in other countries, this is solved by adjusting the size of furniture to the dimensions of logistics operators, dividing furniture sets into different packages, organizing special furniture logistics, and so on.

Back in 2017, the Swedish company was looking for partners in the region to manufacture furniture at local production facilities. But the representatives of IKEA did not provide any official comments regarding this issue.

As it turns out, IKEA simply could not find partners for cooperation. Roman Mathis, Head of the Investment Policy Department of Lviv Regional State Administration, in his comment to Tvoie Misto, said:

I’m not saying it’s not possible at all. IKEA will enter the Ukrainian market, but not now. Ukrainian businesses are not ready to partner up with IKEA. Many Ukrainian companies were not ready for such questions as whether their employees eat well and about their 8-hour working schedule. You cannot even comprehend the situation we have in the woodworking industry of the Lviv region.

Last August, IKEA presented the full list of products for which it wants to find Ukrainian production partners.

The company is interested in manufacturers of armchairs, sofas, office chairs, as well as producers of aluminum pans, stainless steel pots, lumber, ceramic washbasins, porcelain, and glassware, float glass, lamps, etc. The essential condition is a turnover of more than 2 million euros.

In July 2019, the media reported that the first IKEA store in Ukraine would be opened by the end of 2019. The store is to be opened in Kyiv’s Blockbuster Mall.

In addition, the company has kicked off the hiring process (100 employees) for its first urban store in Kyiv.

The first Ukrainian location will be opened by the end of 2019. The company promises to sell there up to 6,000 products. According to UNIAN, the store will work in the shopping center Ocean Mall, which has not yet been put into operation. However, according to NV Business which is citing three sources, the first IKEA store will kick off in Blockbuster Mall shopping and entertainment center of Vagif Aliyev’s Mandarin Plaza Group. The launch at Ocean Mall was canceled due to delays in the deadline.

There is no product range on the Ukrainian site yet. Currently, it displays the company’s history, a form for submitting a CV, and information about the Ukrainian team.

So far, IKEA has information about two employees. Florian Mellet, a Frenchman, has been appointed as a director of IKEA Retail Ukraine, and Viktoriya Novokhatsky (previously worked at Shell and Volvo Trucks) appointed as HR manager.

The site reads that Mellet will work on expanding the IKEA network following the launch of the first store. The locations of other stores have not been disclosed. Earlier, Vagif Aliyev said that the second 30k sq.m. store will be opened in the Lesnoy shopping center in Kyiv, at Brovarsky Avenue, in early 2020.

In addition, IKEA has signed a five-year logistics and goods delivery contract with Nova Poshta.

The Swedish corporation is preparing for opening in Ukraine. City-format IKEA shop will be located in Ocean Mall. The opening is planned on September 01, 2019.

NP Logistics will provide fulfillment and delivery services. The first category includes the goods storage in the warehouses and formation of orders for receiver. Nova Poshta describes the cooperation as follows:

The principle is that a customer places an order with the Internet shop by selecting a laptop, baby crib, and dishwashing liquid. The shop does not keep goods in its warehouse and uses the fulfillment service that is all the goods are kept at the NP Logistics warehouse. The Company employees collect the items of the order and deliver it to the customer. The shop saves money on warehouse maintenance and staff, and the customer receives the best guaranteed service.