9News: Retail Future

Peter Overton, Nine News Sydney: There are plenty of signs the retail game is tough.

Brands like Toys ‘R’ Us, Esprit and Max Brenner all collapsing in recent months. But those bucking the trend are changing the way we shop.

And there’s no better example than what’s happening at IKEA’s new distribution centre at Marsden park.

Ross Greenwood: Almost like an alien space craft, this robot is doing your shopping.

But its shopping the new way – at IKEA’s biggest Australian store, the store you’ll never step foot in.

This is the IKEA store that people never see –

Jan Gardberg, Managing Director IKEA Australia: Yes, it’s a big store than no one sees. Its about 75,000 square meter. 

Greenwood: Put that into perspective, its twice as large as IKEA’s biggest store and its topped to the roof with goods. It’s just one of three such centres in Sydney, Brisbane and Melbourne.

And this is all about the future of shopping – what we like, what we don’t like.

Gardberg: What I want to do is get rid of is to carry big bulky goods like wardrobes, chest of drawers, and the kitchen packages, an so on.

Greenwood: These giant warehouses means less bulky goods in traditional stores – more displays, kind’ve like car showroom.

Gardberg: This transforms the store from warehouse area to more inspiration, what the customers are really looking for.

Trent Duvall, KPMG: They have listened to their consumers, their consumer love their product but their time poor.

Nathan Cloutman, IBIS World: IKEA account for around 13 per cent of Australia’s $7.5 billion furniture and retailing industry.

Greenwood: But the future of store design and these warehouses is also very much about online shopping.

Behind the bold and colourful designs on shopping websites, this is the reality of the future of shopping.

Dark warehouses with robots that go and get your goods and bring them to dispatch that are then sent to you within the day.

And with so many Australian retailers struggling right now, it’s those that don’t invest in the future, such as this, that are really being left behind.

In its first three months, IKEA, shipped 40,000 parcels.

Gardberg: We have between 10 and 15 per cent of total turnover already going through online.

Greenwood: But these centres are also the key to rollout of smaller IKEA stores to areas that could never support a giant store.

Ross Greenwood, Nine News

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