Interviewer: Thank you so much for having us today. Before we begin the interview, we would like to know more about you and your professional background.
Anca Iordanescu: Hello, nice to meet you, Rui. My name is Anca Iordanescu. I am the VP of Engineering for Store of the Future, leading the team at Digital Ikea, which is driving the new digital format of the Ikea blue boxes. So, I am looking, together with my team, across three areas. We want to understand how we will meet the customers in the future retail world that is coming, how we are going to support our co-workers to meet our customers, and, of course, how we are looking at the store from an automation perspective, innovation, and carbon footprint because, of course, we need to achieve carbon neutrality by 2050.
Anca Iordanescu: So, that’s a short summary of my history. In terms of my background, I’m a tech person. I have spent most of my life working in technology. I started at Ericsson many years ago in telecom during the advent of new mobile technology. I then moved to Sony and Sony Mobile, where I worked on digital transportation efficiency and container management. Seven years ago, I joined Ikea, and I have been in this role for the last seven years.
Anca Iordanescu: In addition to my work, I am also the founder of the Women in Tech Alliance. We are driven by a mission to support one million women to thrive and excel in the tech industry and create better gender balance in the technology world.
Interviewer: Of course, that’s super important as well. Because there is a significant gap between women and men in certain fields. Now, focusing a bit more on Ikea and the stores of the future, could you please provide us with a brief overview of the current operations and the goals that you have in mind?
Anca Iordanescu: Yes, of course. From a store perspective, we are looking at how we can reach more customers as their shopping behavior evolves. We want to increase the basket size and encourage customers to visit our physical stores because we know that customer behaviors are changing, and they prefer to shop from home for the convenience it offers. Ikea is known for its large out-of-town stores, which presents a challenge. Our goal is to adapt to customer needs, especially when opening new formats in city centers. We need to change how we digitally engage with our customers. So, apart from sales goals, my goal is to create a seamless Omni-Channel journey that can start anywhere and end either in the store or at home with click and collect or delivery.
Anca Iordanescu: In terms of operational goals, it’s all about efficiency. We want to optimize how we run our store operations, make better use of our coworkers, and reduce manual tasks, so we can reallocate their time to serving customers.
Interviewer: That sounds great. How are you integrating technology within these new formats? Can you provide some examples?
Anca Iordanescu: Certainly. When we consider the new formats, such as smaller stores in city centers, technology plays a crucial role. For instance, we use virtual reality to showcase products in these smaller spaces. We have a feature called the “rug corner,” where customers can project rugs in their eyes and virtually place different furniture items. We also have “cushion towers” that digitally display various cushion designs, allowing customers to touch and feel one physical sample. This is part of our range exploration concept, where different product categories can be virtually and digitally displayed.
Anca Iordanescu: Another aspect is creating immersive experiences. We have rooms with free walls where customers can design their ideal room layout, starting from a computer at the center. They can visualize how furniture and decor items will fit in their space.
Anca Iordanescu: We have also introduced an app that enhances the in-store experience. It provides personalized recommendations, store navigation, and even assists in creating cohesive room settings based on what customers have in their baskets or wish lists.
Interviewer: That’s impressive. Are you seeing increased customer satisfaction translate into more store visits and conversions, both online and in-store? How do you measure this?
Anca Iordanescu: Yes, with every pilot we undertake, we collect data. Currently, we have this app in six stores, and we’ve observed increased customer satisfaction, higher sales, improved conversion rates, and customers adding more complementary items to their baskets. This indicates that customers are not only buying what they initially intended but are exploring and purchasing related items. However, it’s important to note that our data is still limited as we have approximately 500 stores, and we are in the early stages of these pilots.
Interviewer: Are there any other innovative technologies or strategies on the horizon for Ikea’s digital stores of the future, and how do you plan to integrate them?
Anca Iordanescu: Absolutely, there are many technologies on the horizon. We are heavily invested in AI, which we plan to use for an AI-enabled assistant, available both on the app and in-store, to provide customers with personalized assistance and recommendations. We’re also looking into digital twins to optimize store operations and customer experiences by understanding behavior and suggesting improvements.
Anca Iordanescu: Personalization and generative design are other areas we’re exploring. Customers may have the ability to design their own furniture, which would require significant changes in our supply chain. Additionally, sustainability is a top priority. We aim to reduce carbon emissions through innovative technologies and practices.
Interviewer: Those are exciting prospects for the future. Finally, what lessons have you learned from integrating technology into Ikea’s stores, and what advice would you give to others looking to do the same?
Anca Iordanescu: Two key lessons I’ve learned are not to fear making mistakes and being data-driven in decision-making. Don’t be afraid to experiment and make mistakes because that’s how we learn and improve. Additionally, prioritize resources on impactful projects and measure their impact using data. Effective decision-making and collaboration with stakeholders are also essential to drive technological innovation in retail.
