IKEA to find out furniture rental in 30 markets

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KAARST, Germany (Reuters) – IKEA will expand tests permitting customers to rent desks and sofas rather then purchase for them the way it shifts from the selling low-cost disposable furniture reacting to growing environmental concerns.

The world’s biggest furniture group first stated it was investigating furniture leasing in February. It fleshed out its intends on Wednesday at the event held at its first 'sustainable' store in Kaarst, western Germany, opened in 2019.

"Using opportunities for leasing offers is just about the ways i am challenging ourselves to supply on our transformation strategy," said Jesper Brodin, us president of Ingka Group, which owns most IKEA stores.

"Global warming and unsustainable consumption are among the biggest challenges we face in society."

IKEA's move toward supporting an increasingly circular economy is available as many young consumers say they want to minimize their effect on the environment, preferring to book items which range from clothing to cars.

Its business model has recently get into pressure through the rise of online retail and a growing reluctance among younger shoppers to visit its vast out-of-town stores, have the flat-pack furniture home and assemble it themselves.

Rent the Runway, which has previously only rented out designer apparel and accessories, said last month it’s going to partner with Williams-Sonoma Inc's West Elm brand to let subscribers to lease home decor.

IKEA, which have global sales of 39 billion euros ($44 billion) a year ago, claimed it desires to develop subscription-based leasing proposes to encourage products to become reused as frequently as it can be before being recycled.

It had already invested in make all of its products from renewable and recycled materials by 2030 and also to design its products being reused, repaired and recycled. In 2018 it handled One million orders for spares to mend products.

IKEA has started testing different furniture rental projects inside the Netherlands, Sweden, Switzerland and Poland, and aims to grow the tests for all its 30 markets the coming year.

In Sweden and Switzerland, its considering providing furniture to companies using a subscription model, with the Netherlands it really is testing accommodations package for individuals in cooperation which includes a housing association.

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