Stefan Sjostrand became Ikea Canada’s president in September and he’s now on a cross-country tour of all 12 locations. To better understand his new role the former Ikea developer has met thousands of co-workers, spent time at the Montreal call centre and even writes a weekly blog about his new journey in Canada. He was in Ottawa on Tuesday to talk service, kitchens and, of course, meatballs.
Q. With Target Canada closing all 133 stores this year, it changes the retail landscape somewhat in Ottawa. For a multinational to survive in a competitive global market, what should retailers do to maintain their customer base?
A. Ikea is in the market with a long-term view, that is very important. And before we go into a new market, it takes years before we open up a new store. And that is because we want to make sure that we understand the market, that we understand the local conditions of this market, and also what are people’s needs. We were (researching) the South Korean market for five to seven years before we even opened up the first store. We learned about the South Korean people, we learned about how they live, about what is their expectations, what is the purchasing power, to really understand the market before we open up. Today we have 12 stores (in Canada) … so we are not rushing, we take it step by step.
Q. Before your role as president, you used to help develop Ikea products in Sweden. Which products have your touch?
The product I love the most is the Algot, it’s a storage system. First of all it’s affordable, which is very important, and then it’s so easy to assemble and it’s so functional. I have it in many places in my home and my wife, she always says, “Oh no, not an Algot again!” because there’s always places you can work with an Algot … it can be used in the closet, in the basement, in the garage. So it’s, according to me, a fantastic system.
Stefan Sjöstrand is new president of Ikea Canada.
Q. How is the employee culture different at Ikea compared with other retailers?
A. I have a dream and I have a vision that we should be the best employer in Canada. How can we continue to develop the co-worker, which is the most important, for a person to feel proud and happy in their daily life? And of course we pay wages above industry standard (97 per cent of employees earn more than $11 an hour, and 32 per cent make more than $17 an hour). Then on top of that we pay a bonus for each employee in the company … and then on top that we have Tack, which is Swedish for thank you. And that is a yearly retirement fund program, every (employee) received the same amount of $2,800. And on top of that each co-worker can eat in our staff restaurant for $4 a day.
Q. Do you eat at Ikea, and what are your favourite meals?
A. “Of course,” says with beaming smile. “I actually ate here today. I’m Swedish, so I love our meatballs. And I also like salmon. The food reminds me of my Swedish (roots) in a good way. But my son and daughter, they want to have the meatballs with the french fries and gravy, and they also like the poutine a lot.
By the Numbers
1978: When Ikea first opened in Ottawa
100,000: The square footage of the old Ottawa store
427,000: The size of the current Ikea store, which opened in December 2011
40: The increased percentage in efficiency compared to the last wave of stores built in the early 2000s.
3,000,000: Customers served per year
25: The percentage increase of sales at the new store compared with the old.
350: People employed at the new store
80: The increased number of people employed compared with the old store.
9,500: The number of products the Ottawa location carries
640: Number of seats in the restaurant
81: The percentage of customers who eat in the restaurant
14,974,206: Meatballs sold per year
