August 29, 2018 / 6:08 AM / 24 days ago

IKEA to shut Norwegian in-town service and pick-up points amid cost cuts

OSLO (Reuters) - Furniture retailer IKEA will shut three city center service and pick-up points in Norway as part of a drive to cut costs amid declining profits, the company said in a statement on Wednesday.

The logo of IKEA is seen above a store in Voesendorf, Austria, April 24, 2017. REUTERS/Heinz-Peter Bader

The facilities in Oslo, Aalesund and Tromsoe were opened in 2015 and 2016 in a global pilot program to test customers’ appetite for alternatives to IKEA’s large out-of-town stores.

IKEA now plans to cut costs in Norway by some 10 percent to help boost profits, although employees at the three sites being shut were offered jobs at its other stores, the company added.

As part of a three-year program to renew itself, IKEA said it would improve online offerings and shorten delivery times to boost appeal to customers.

(This story corrects to say facilities that are being closed are service and pick-up points, not stores)

Reporting by Terje Solsvik; Editing by Clarence Fernandez

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