February 16, 2005 Battle of Edmonton sparks PR problemOrganisation: Ikea
Analysis and commentary by Echo Research. Reporting of the disastrous opening of the Edmonton Ikea store may sound some warning bells for the Swedish retailer. Beyond the predictably negative headlines was an undercurrent of hostility towards the flatpack pioneer. The Ikea consumer experience, deemed to come a poor second to low prices, was singled out for particular criticism: "Ikea treats its customers so badly, a riot is the least it might have expected"wrote The Guardian (10/2), cataloguing an absence of internet ordering, insufficient stock, poor customer service, and lengthy queues. Others accused it of irresponsibly stimulating demand with heavy advertising and special offers in a deprived area: "Does it pay to advertise?"(The Times, 10/5). Moreover, the Ikea brand, like Burberry, was linked with chavdom, surely unhelpful to its image: "Ikea Chavalanche"screamed the Daily Star (10/2), while the Daily Telegraph snootily referred to "the chav fest on Thursday night"(12/2). Yet, with almost twice as many people visiting Ikea as attending church on a Sunday, and buoyant profits, does any of this matter? Many commentators took the view that consumerism, rather than Ikea itself, was to blame for the Battle of Edmonton. Whatever the reason, Ikea has a PR problem that needs a defter touch than its present Allen key approach.
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