Ikea’s new Hammersmith Store has revealed an instore and home delivery model that could be replicated by independent retailers to compete with some of the biggest brands in the industry.
Combining the instore and online experience, Ikea has launched a smaller retail space that combines instore and home delivery. They have achieved this by stocking around 1,800 smaller items such as home furnishing accessories which can be bought and taken away. They also have around 4,000 items that are for display purposes only, however they can be ordered for home delivery. They also have a catalogue of more than 11,000 items that are available for delivery.
This has been made possible by utilising a Dartford-based distribution centre which will enable 24-hour deliveries.
Ikea has done a fantastic job of maintaining the range of products that customers require, as well as opening a Swedish deli that serves the brand’s famous meatballs to turn it into more of an experience.
How can independents use this instore and home delivery model?
This model of retail is becoming increasingly popular, combining the strengths of instore and ecommerce while providing a memorable experience that meets customers’ changing demands.
We take a look at the way that retailers of all sizes can utilise the instore and home delivery model:
1. Choose instore stock carefully
The first step is to feature larger quantities of best-selling, smaller sized stock that encourages footfall and enables customers to make instore purchases. Use sales data and customer feedback to determine the products that are most likely to sell instore.
2. Create a memorable instore experience
To gain repeat business, retailers must give customers a reason to visit their store. As well as having the right stock instore, it is essential to provide excellent customer service and make the shopping and transaction experience as enjoyable and straightforward as possible. While Ikea has started selling its well-known foods instore, consider ways to stand out from your audience, whether this is offering coffee to customers, having tablets to place home delivery orders on, or making sure staff are up to date with knowledge so they can share their expertise and passion with customers.
3. Decide which items to showcase
With larger items that cannot be stored easily in smaller spaces, it could be beneficial to have some items instore as display only and give customers the opportunity to have them delivered to their home, instead of being able to bring them home from the shop. This means customers can view the product, enabling retailers to tap into the 87% of customers who make impulse buys. As well as freeing up retail space, it also removes the hassle of transporting larger products for customers.
4. Storage and fulfilment
Retailers’ ability to offer efficient instore and home delivery services relies on a suitable fulfilment network. This can be achieved in a variety of ways, from outsourcing fulfilment, to bringing it completely inhouse.
Could the instore and home delivery retail model benefit your business?
Re-thinking the relationship between instore and delivery can be the beginning of establishing an efficient fulfilment network alongside a streamlined instore experience.
There are various methods of combining the instore and home delivery model, as well as adding options such as click and collect or delivery lockers for customers. Take the time to consider whether this fulfilment model could be beneficial for your business.
Holly brings a wealth of experience in both print and digital publishing. As Modern Retail’s Content Editor, Holly is passionate about helping independent retailers to thrive in today’s ever-changing market.