Circular Bargains is a special IKEA section with products that have been given a second chance. We talk to Wiktoria Plocha, sustainability leader at IKEA, about the details of how this initiative works, a responsible approach to shopping and promoting circularity.
Circular Bargains is a section where you can buy, among other things, the ends of collections and used IKEA assortment
© IKEA
Katarzyna Szostak: Where did the idea for the Bargains Around department come from?
Wiktoria Plocha: One of IKEA's values is not to waste resources. Ingvar Kamprad, the founder of IKEA, used to say that the biggest sin at IKEA is waste. Hence, many of the activities we carry out are focused on the efficient use of resources, and thus - the potential of our products. Even at the design level, we make sure that products are durable, easy to care for and repair, and reassemble and disassemble. All this so that our customers and clients can use them for as long as possible, and when they decide to finally dispose of a piece of furniture, they can pass it on. The Bargains Around department is a solution that allows us to give a second chance to products that perhaps, wouldn't get it through regular sales and consumer processes.
Catherine: Is this an initiative that stems from company policy or is it a response to customer needs?
Victoria: Bargains Around the Clock is a place where you can find products from expositions, collection endings, returns, Donate and Profit service, but also those with minor damages that do not affect their function. They are sold at attractive prices. Thus, it can be said that this department is both a response to the needs of customers who are looking for products at bargain prices, but also to the needs of those who are primarily looking for second-hand products and pay attention to giving things another chance, living according to the principles of the circular economy.
As part of its strategy, IKEA wants to enable a better everyday life within the limits of what is possible on one planet, for many people. It is doing this by, among other things, transforming its business model to a circular one, and thus enabling its customers and clients to do so.
The Circular Bargains department is thus both a way of implementing IKEA's strategic directions, but also a response to the needs of many male and female consumers.
Catherine: How does the department fit into IKEA's sustainability strategy? What are some other actions you are taking in this area?
Victoria: As I mentioned, circularity is one of the key areas in IKEA's strategy, and caring for resources and reducing waste is ingrained in our values. Accordingly, in addition to shopping in the Circular Bargains section, we also offer a Donate and Profit service. It consists of allowing customers and clients to resell their used IKEA products in our stores. In this way, they are assured that they will be given the chance for a second home, thanks to further sales in the Bargains Around section. We also offer assembly parts for our products, or, for example, spare parts for sofas. The aforementioned solutions, are intended to support the implementation of circular economy principles into everyday life, i.e. taking care of the products we already have, or passing them on.
As part of the Donate and Profit service, customers can resell their furniture, which will then find a second home
© IKEA
Catherine: How are the products selected? What is the process of preparing them for re-sale and pricing?
Victoria: The products that end up in the Bargains Around section come from expositions, returns and the Give & Get service. They may have minor defects, while they never affect the functionality of the product. Safety is always a priority for IKEA, so products are checked for this. The inspection is carried out by the Product Quality and Salvage Department, which is present in every store. Here, the correct installation of the product, cleanliness is also verified, and if necessary, some items are also replaced. In the area where people from this department work, there is also the so-called spare parts library, which in the case of some stores even counts several thousand items. It is thanks to it, among other things, that we give a second chance to things that could become waste.
The assortment in the Bargain Around section is always offered at attractive prices, appropriate to its condition, while products from the Donate and Profit service are sold at the same price at which they were repurchased from customers and clients.
Catherine: In the context of increasing environmental awareness, do you see a growing interest in this department?
Victoria: Research indicates that as a society, while we are declaratively willing to take action to reduce our negative impact on the planet, this does not quite translate into our actual actions and consumer decisions. According to the Kantar Sustainability Sector Index survey, the action gap between values and action is 80% and 21%, respectively. The difference is huge. However, in the case of the Circular Bargains department, with our offer we can reach many groups of customers and clients Both those who are close to environmental values and circular living, and those who are looking for products at bargain prices.
Among other things, this is why the Circular Bargains section is very popular. For example, in fiscal year 2024 (September 2023 - August 2024), the number of shopping transactions in this section was 106.9%, compared to the previous year.
Catherine: Are there any product categories that are particularly popular with customers?
Wiktoria: We notice that the most popular products are those that have been with us for years, such as the STRANDMON armchair, MALM dresser and BILLY bookcase. Clients and customers, are also looking for home furnishing accessories.
Katarzyna: What are the challenges of running such a department?
Victoria: Due to the growing interest in Bargains Around the Clock, and thus the increasing number of products that flow through the department, during peak times of the year, it was a challenge to secure adequate commercial space. Hence, in April 2022, IKEA decided to launch the Bargains Around department online, thanks to which the aforementioned challenge was addressed, and thus, customers and clients gained the opportunity to see the current offer on ikea.co.uk and book selected products, for pickup at the stationary store.
Catherine: Thank you for the interview!
