Press Release - 22.10.2024 - 09:00
ILVA strengthens its strategy: "We need to be smaller in order to grow bigger"
The furniture chain ILVA, with a new CEO at the helm, can now reveal how the company will strengthen its store concept both physically and digitally to continue with its expansion.
CEO of ILVA, Kim Møller Mønster, who took office in April this year, now elaborates on the transformation Denmark's largest chain of home furnishing stores is facing. The goal is continued growth, which will be ensured by focusing on two key parameters.
"We are setting the cornerstones for the future with a clear ambition of continued growth. We are building on a strong foundation with a clear strategy that firstly involves digital transformation and secondly ensures an improved customer experience, which is more concept-driven and tailored to the modern consumer," says Kim Møller Mønster.
Availability for the customers
To further support the customer journey, ILVA is adopting a digital-first approach.
"A central part of our strategy is to think digital-first. Among other things, we have decided to make our entire product range available online by the end of next year. It is a big task, which includes integrating thousands of product images on our online platform, but it ensures that we can meet customer needs no matter where and how they choose to interact with us. The customer chooses how they want to shop – it is our job to ensure that the experience is smooth and cohesive," says Kim Møller Mønster.
AI is also becoming an integral part of ILVA's business, as part of delivering better customer experiences and more efficient processes.
"AI will play a central role in our future, including generating our product descriptions. At the same time, we are aiming for a much more personalised approach in our communication, making it less generic and more tailored to the individual customer," says Kim Møller Mønster.
"We have, among other things, invested in a new customer platform which collects and analyses data from all our touchpoints, enabling us to create more targeted and personalised communication. At the same time, we have implemented a new product information system that ensures all our product descriptions can be easily updated and adapted to keep them relevant and accurate," he adds.
Stores are getting smaller for ILVA to grow bigger
In parallel with the digital development, ILVA is investing in the physical store experience, including optimising space utilisation in some of the stores.
"We have redefined the optimal size of our stores, and, to put it simply, we need to be smaller in order to grow bigger. By adjusting the square meters, we create a more balanced and inspiring experience for the customer. At the same time, we get the opportunity to work more focused with our product range and present the products that ILVA believes best meet the customer's needs. We will focus more on the depth of our collections and series rather than the breadth, offering customers a targeted selection and at the same time achieving better prices from our suppliers, benefiting the customers," explains Kim Møller Mønster.
In practice, the strategy will cause some of ILVA's stores to close and then to reopen in new locations that match the future concept. Other stores will be reorganised, and there will be more work done to subdivide existing stores so that other brands can move in and contribute to a more dynamic retail environment.
"Specifically, some stores will go from 12,000m² to just 2,500m². The goal is to ensure that customers get a coherent experience no matter where they encounter ILVA, while also offering them local service that is rooted in their area," Kim Møller Mønster concludes.
