Quote:
Originally Posted by Treesplease
I don't get the Ikea "pick up / distribution centre" concept. I'm imagining a small footprint store front type place with a bit of a ware house for holding local shipments whereby customers come and pick up Ikea items they have bought online; sort of like the old sears kiosks they used to maintain in small towns for pick up of catalogue ordered stuff. Why is this a better idea than Ikea contracting with a UPS and have items shipped from Calgary (or Winnipeg as penis insists) and have it DELIVERED TO THE CUSTOMERS DOOR? I find it hard to believe there will be that much stuff coming from ikea to justify the infrastructure that would entail vs. just run it through UPS. Whatever, Ikea is a multi $billion multi national and I'm not.
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For one, these aren't just going to be a small counter with boxes. It's going to be a retail store, stocking the 99 most popular items.
The first of these stores are quite substantial:
London - 19,848 square feet
Quebec City - 39,554 square feet
St. Catharines - 25,133 square feet
Whitby – 33,303 square feet
Windsor - 30,623 square feet
As a comparison, the old Future Shop, current YMCA is around 18,000 square feet.
Additionally, the shipping rate is a flat $20, regardless of size.
The reason this will work is because they will likely consolidate orders into delivery trucks, therefore reducing cost. Currently shipping from IKEA is astronomically expensive and any arrangement with UPS et al will never be affordable.