This week I visited an IKEA store in the USA. Well, I visited a blue and yellow warehouse type place with the name IKEA on the front and furniture with odd Scandinavian names inside, but there the resemblance to the IKEA I love ended.
The visit was to a store in New Jersey, right by Newark Airport, at a place called Elizabeth. This area constituted a new benchmark for me for the term industrial wasteland. It seems the whole of this part of the state consists only of motorways, railroads, swamps and factories.
I was already a bit stressed, the visit coming half way through a day of picking up bits of furniture in a van from most of the New York City boroughs as well as New Jersey. But I wasn’t ready for what happened inside my blessed IKEA.
The physical layout was familiar, though the car park was vast, uncovered and bleak, and the inside seemed tired, even the restaurant. But the real problem was the service.
First, the store did not have a single catalogue inside. That is a bit like a pub with no beer, as the catalogue is at the heart of the business model. The staff were blasé about it. Seemingly, a new one was just coming out next week. But really, how can it be acceptable ever to run out of catalogues?
Then, the place seemed understaffed, and the staff that were there just didn’t have motivation or knowledge. Only three checkout lines were open, with long queues, though the people manning them seemed happy talking among themselves some of the time. After establishing upstairs that the storage units I wanted did not get supported upstairs (why?), I found the warehouse, and some computer screens which got me tantalisingly close to the information I needed to go and fetch my components. But only close. Some pictures didn’t come up well on screen, and the menus were not good enough. I just needed a catalogue! Or even the IKEA website would have sufficed. But neither were available.
Instead I asked for help. The first guy was offhand and pointed me to another guy behind a desk. Who was rude, ignorant and useless. In the end I had to guess what I needed I still don’t know if I guessed well or not.
The other thing that struck me was the absence of joy in the whole place. The staff were just going through the motions, and no managers were in sight. The customers were grim faced. Many were confused and unhappy, and more than one was handing out abuse to anyone who would listen, shouting “this place stinks” or things like that.
All in all, after a long hour and a half, I was very happy to get back to the van and drive off into the industrial wasteland, fortified only by the good meat balls, but otherwise in a foul mood. And I suspect many other customers left the same way, and some of those would not return.
When I got home, I tried to work out what had happened and why. Many European retailers struggle in the USA, and IKEA has had a mixed experience here. Does my experience this week offer any clues as to why?
When I thought about it, many of the direct aspects of the experience were similar to Europe. IKEA is nearly always in something close to an industrial wasteland, and parking is never fun there. Choosing items from the warehouse is always a fraught experience, and often leads to mistakes and follow up visits. There are frequent queues at check outs. Staff often seem to be absent from where you need them and not to quite the knowledge needed.
So the European experience is not a bundle of laughs either. Yet somehow there is something about it which makes me feel good. Something plainly missing from the experience in the USA.
I thought back to my first visits to IKEA in Europe. These had been tough too. It took time to build belief in the business model and faith in myself to make it work for me. I remember long queues in Croydon as well, and the misery of having to take loads of stuff back due to my errors. Yet I came back, and became a fan.
I think there were two reasons. One is the end product. I managed to persevere long enough with IKEA to get benefits, and to believe that I would continue to get benefits. The products are great, and wonderful value, and brilliantly designed, and even I can put them up. If I keep my head down through the difficult parts of the experience, I would emerge at the far end with a good outcome. I came to believe it was worth it.
The second reason is that IKEA did everything they could to make the experience bearable, with positive aspects mitigating the inherent bad bits. The catalogue is clear. If my mood is light enough, I can marvel at all the great products. The restaurant is a miracle. I can take myself out of the experience itself and intellectualise how superb the business model is. The staff do their very best to help. And somehow a combination of all this means that lots of other people, with their kids, are in a light, positive mood around me in the store, which keeps my own mood lifted.
So in Europe the two factors build a strong brand. The positive parts of the experience are just enough to get you through the inevitable negatives, until the great outcome kicks in, from when your mood on visiting is so good you stop noticing the negatives.
Obviously what was missing in Elizabeth was the positive aspect of the experience. Far from happy kids and great staff, this place was just miserable, and we were all dragged into the void, even long-time fans like me. And this came down to basic operations. Not enough staff. Management not caring enough (or bothering to find out) about a lack of catalogues. Undertrained, under-motivated staff.
The USA is strange when it comes to staff. I receive some wonderful service every day, from people who lift my mood. I used to think the famous “Have a nice day” cliché was a false thing forced on people by training and coercive management, but I learn that usually it isn’t. When this wow factor exists it is powerful. But I also frequently experience the opposite. Just now, having arrived, I meet a lot of government departments, and they are notorious, not just in the USA. The Department of Motor Vehicles has scarred me already, and just from one visit.
I suspect the main problem European retailers have is in creating this wow factor among the local managers and staff. This certainly seems to be the case with IKEA. Which suggests that US staff respond to a different combination of stimuli. The package of pay, teamwork, training, job security, incentive and other things needs to be different here.
I’ll observe more and develop some theories. One possibility here is that the freshness fades more quickly, so managers have to find new ways to keep people motivated more often. That would correlate with the focus on marketing and continuous renewal here.
Whatever the secret, IKEA in Elizabeth do not have it, or if they once had it, they lost it. IKEA global managers should be ashamed of that store, at least based on that one visit. I will be going to the one in Brooklyn this week, with some trepidation. Can my icon recover?
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