Is the buyback initiative at IKEA sustainable? – RetailWire

06 April 2022

IKEA makes Repurchase and Resale A permanent program across 37 US stores after a beta trial last summer.

The service applies only to used IKEA furniture that is fully assembled and commissioned. Acceptable products include office chests of drawers, bookcases, coffee tables, dining tables, desks, chairs and stools without upholstery. IKEA will not take back beds, sofas, mattresses, home furnishing accessories, leather goods or lighting fixtures.

The retailer will sell the items on file as it is Store sections that also stock Paused items and previous displays.

Used furniture sellers get credit from the IKEA store. In the UK and Ireland where the program was launched, sellers receive between 30 and 50 percent of the original price.

“Do you have old IKEA furniture, but it’s still a good thing, and are looking forward to retirement?” IKEA states on its website. “By finding your furniture in a new home, we’re making the things we love last longer.”

Is the buyback initiative at IKEA sustainable?
Photo: IKEA

The program is compatible with the IKEA program Goal to me become climate positive by 2030.

In soft goods, Levi’s, Patagonia, The North Face, Madewell, Allbirds, Fabletics and Eileen Fisher are among the recently launched initiatives that allow customers to return items for store credit. Programs come in the form of Gen-Z’s passion For Sustainability supports strong growth across a wide range of apparel resale platforms, including ThredUp, The RealReal, Poshmark and Depop.

However, the re-furniture business faces challenges, such as shipping bulky items, but is beginning to be described as the next growth opportunity.

Last week, Kaiyo, an online furniture resale marketplace, raised $36 million in a funding round. The New York-based startup said It saw more than 100 percent year-over-year growth due to increased interest in the circular economy and supply chain issues caused by the pandemic.

Alpay Koralturk, founder and CEO, said at statement.

Other places that sell used furniture include Kaiyo’s competitors, AptDeco and Chairish, as well as Craigslist and Facebook Marketplace.

Discussion Questions: Do you see the benefits outweigh the potential drawbacks of IKEA’s expanding buyback and resale program? What do you think of the overall growth potential of the furniture re-trade?

Bryant

“I feel re-trade is about to be huge for many categories of merchandise, not just clothing. Thank you IKEA for supporting this idea.”

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