Building a circular business model: Ikea secondhand store in Sweden extended until August 2025

Two years ago, Ikea Retail Sweden opened its first secondhand store as a test at the Retuna Recycling mall in Eskilstuna.

During FY22, sales more than doubled at the location, by giving around 43 000 products a second life instead of going for waste. This made the business profitable.

“Based on the insights during those two years, we are now taking the next step by keeping the store until August 2025. At the same time, we are transferring the learnings into our 21 Ikea stores in Sweden,” says Reza Shomali Country Business Development & Transformation Manager in Ikea Retail Sweden.

“This way, we will be able to offer more of our customers in Sweden our secondhand products. Key to that success is always the competence and passion of our co-workers and partners in combination with the Swedes willingness to donate for reuse instead of sorting as waste.”

“With that said, the reasons behind the success are, a perfect venue with a flow of products and low transportation costs, a collaboration with the right partners, a steadily improved operational efficiency, a widened range, and an ability to really meet the customer’s needs.”

“Thanks to the secondhand test in Eskilstuna, we have developed our skills in seeing value where you do not always see it, like in waste, or in cleaning and repairing used products.”

Ikea says that it is committed to become a circular business by 2030. 

During FY22, owner Ingka Group tested a range of solutions, including repurposing its As-Is areas into circular hubs in 306 stores, enabling customers to buy secondhand and nearly new furniture.

32.5 million products were sold in the As-Is areas, with 1.8 million customers using a spare parts service to repair and extend the life of their Ikea products.