IKEA Austria Süd: New Ways for Graz and Klagenfurt

IKEA Austria Süd: New Ways for Graz and Klagenfurt

In the past few months there have been significant changes in the management structure of Ikea in Styria and Carinthia. Since August 2023, the management of the IKEA facilities in Graz and Klagenfurt as well as the planning studio in Villach has been taken over by a new management team. At the top of this team is Gottfried Kienzl, an experienced manager from Graz with family roots in Carinthia. Kienzl, 53 years old and father of three children, knows both regions well after working as a store manager in Klagenfurt and Market Manager in Graz.

The current market situation, however, is a challenge. Similar to other companies in the industry, the IKEA furniture group has a decline in sales and customer frequency. These changes are partly due to the rising loan interest and inflation, which can be felt together with a decline in housing construction. Among other things, Kienzl attributes this to the acceptance of new residential projects: "Less new apartments are also called fewer kitchens," he explains. Despite these declines, there are also positive developments. The demand for home accessories in particular remains strong, since many customers are more likely to invest in smaller articles to refresh their living space.

sustainable online sales

In the time of pandemic, Ikea experienced a significant increase in online sales and although the numbers no longer rise to the same extent as before, the level remains high. Kienzl emphasizes that despite the increase in online business, physical business plays an important role, since customers often want to check the quality of the products before buying. The company pursues a strategy to ensure that customers do not live more than 45 minutes of travel from an Ikea location. For this reason, a planning studio in Villach was also opened to better serve the Upper Carinthian region.

The demand for delivery and assembly services for furniture has increased significantly in recent years, especially in urban areas such as Vienna, where many households do not have their own car. Kienzl reports that more and more customers are also using this service in Carinthia and Styria because the trend is not to collect and build furniture itself.

Another aspect that Kienzl appeals is the decline of the Slovenian customers who previously frequented Ikea branches in Klagenfurt and Graz. With the opening of a new location in Laibach, the proportion of Slovenian customers in Klagenfurt dropped to only three percent. In Graz, most customers from Styria and the South Burgenland are, while in Klagenfurt the main customers mainly come from Carinthia and East Tyrol, with the greater Wörthersee area playing a central role.

The planned partnership with a new cooperation partner for the vacant space at the Klagenfurt location is also an important topic. Kienzl confirms that the talks are about to be completed and that you want to present a partner this year. This cooperative strategy could help expand the offer and to keep IKEA competitive in the future.