IKEA and Amazon are reportedly close to an historic deal in Sweden

A deal with Amazon would be historic for Ikea, as it currently only sells its furniture through proprietary channels.

  • Ikea is reportedly close to a distribution deal with Amazon in Sweden.
  • Such a deal would be a first for Ikea, as it has traditionally only used its own sales channels.
  • Ikea CEO Jesper Brodin earlier said the company is "reviewing" the possibilty of working with third-party online sites.
  • Adding fuel to the rumors is that Amazon is said to be entering Sweden soon.

Swedish tech site Breakit reports that Ikea and Amazon are close to signing a deal that would see the Swedish retailer’s furniture sold through Amazon Marketplace -writes nordic.businessinsider.com.

This according to Breakit’s anonymous source, who in turn cites several people “who confirm that a deal is already signed”.

“A not too farfetched guess is that Ikea would announce the news when Amazon opens its doors on the Swedish market,” Breakit writes, referring to its own reports of Amazon's looming launch in the country.

Ikea hasn't so far commented the rumors.

This year, the Swedish furniture giant has launched a new business unit charged with digital initiatives, partnerships and acquisitions. The new strategy has already shown in the company's new AR shopping app ,Ikea Place, and the recent acquisition of TaskRabbit.

“This is the next step for Ikea - Ikea 2.0,"said Jesper Brodin, whobecame CEO of Ikea Group earlier this year, to Bloomberg .

Another key growth avenue is e-commerce, which makes up only 5 percent of Ikea Group's total revenues. To boost sales, the company is "reviewing" the possibilty of working with third-party sites, Brodin told Bloomberg.

Even if the Amazon rumors are true, Ikea is not abandoning its own channels anytime soon: just last Friday, the company opened a massive warehouse outside Stockholm to support its Swedish e-commerce business.

nordic.businessinsider.com
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