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IKEA to shut Norwegian in-town service and pick-up points amid cost cuts

OSLO: Furniture retailer IKEA will shut three city centre service and pick-up points in Norway as part of a drive to cut costs amid declining profits, the company said in a statement on Wednesday.

The facilities in Oslo, Aalesund and Tromsoe were opened in 2015 and 2016 in a global pilot programme to test customers' appetite for alternatives to IKEA's large out-of-town stores.

IKEA now plans to cut costs in Norway by some 10 percent to help boost profits, although employees at the three sites being shut were offered jobs at its other stores, the company added.

As part of a three-year programme to renew itself, IKEA said it would improve online offerings and shorten delivery times to boost appeal to customers.—REUTERS

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