IKEA Israel CEO Mr. Shuki Koblenz gives fascinating lecture on the chain's Nordic model

29 December, 2021
Mr. Shuki Koblenz
On the occasion of marking 20 years of activity in Israel, IKEA Israel CEO Mr. Shuki Koblenz arrived last Monday for a fascinating lecture on the chain's Nordic model. The evening was sponsored by the school's alumni organization and in the presence of the school's dean, Prof. Nicole Adler.
The central question that hovered in the air was whether despite the nationwide deployment of stores and millions of customers each year, IKEA manages to do business in an equitable, environmentally and responsibly manner.

The business vision; "Prices are so low that most people can afford to buy them," is one of the prominent elements of the chain. One of the reasons why IKEA manages to keep prices low is precisely the remote attitude of IKEA employees, which at first glance seems disparaging. Its purpose, according to Koblenz, is an independent shopping experience. This goal is in line with the "cash and carry" policy adopted by the chain. "Most of the financing is in storing inventory," Koblenz explains. The investment in maintenance and storage compared to the development of direct service to the customer, allows the costs to be reduced.

In addition, participants expressed great interest in the way company values ​​are actually expressed in stores. Koblenz referred to the organizational conduct, the model of the company's sustainability and more. When asked about overcoming the logistics chain following the Corona pandemic, he explained that unlike other giant chains, IKEA took a bold step, investing over a billion euros in leasing cargo ships, buying containers and even leasing planes, a move that put the chain out of danger during the crisis.

Koblenz, who came from the field of finance and finance, presented the Nordic model as "a collection of values ​​that we could, and would like, have here." According to Koblenz, it was these values ​​that leveraged the network in Israel and made it prominent in the Israeli market. "IKEA's values ​​are me," he explains, "even if I do not embrace Nordic culture."