The global economic crisis is even hurting firms that are known for low price, such as IKEA [updating my Chapter 2 coverage of the marketing environment].With fewer people buying furniture and housewares, IKEA's sales are 632 million euros lower than projected for this year. To close the gap between forecast and actual sales, IKEA are cutting costs and jobs. IKEA believe the slowdown will affect sales for another year or two.
Meanwhile, executives are staying with their plan to open new stores around the world. Another key aspect of IKEA's strategy is the loyalty scheme, called IKEA Family, which is free and offers personalised promotions via e-mail to members. Will IKEA be able to boost sales in the second half of 2009?
