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Ikea Plans Massive E-Commerce Makeover

Photo: Philiipe Huguen/Getty Images

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Soon enough, buying online from Ikea will no longer be as difficult as putting its products together. In an interview with CNBC, Ikea CEO Peter Agnefjäll admits that the company was late to the online sales game. "We could have been faster, I could agree to that," Agnefjäll  says. However, Ikea plans to rectify this by working on its online presence over the next five years, namely, Ikea's website and the way it delivers products to customers.

Agnefjäll also hints at an app that will allow customers to shop on phones and tablets. "By being late we can skip a step in the technology development, straight to mobile and tablet," he says. Currently, Ikea only offers two apps, the first is an "in-store shopping companion" that lets customers create a shopping list, but not order products. The other Ikea app simply enables people to view the retailer's catalog on mobile.

Ikea's currently rakes in $30 billion of annual revenue, but hopes to grow that number to $50 billion in 2020 in part by beefing up its online capabilities.