Ikea will try renting furniture to prolong product lifespan

“You could say leasing is another way of financing a kitchen,” Loof said. “When this circular model is up and running, we have a much bigger interest in not just selling a product but seeing what happens with it and that the consumer takes care of it.”

The Swedish furniture retailer is opening smaller stores in downtown areas and working to improve customers’ delivery and online sales experiences. Ikea plans to open its first smaller, “city center” store in Manhattan this spring.

An Ikea spokesperson told CNBC via email that the company is working on new business models as it looks to reduce its impact on the environment.

“In certain markets, such as Switzerland, we’re exploring and testing potential solutions, designing relevant offers and then test them with customers,” the spokesperson said.

Ikea is also considering a spare parts business for consumers to replace parts like screws for furniture that are no longer in stock.

The first leasing trial will start in Switzerland as early as this month, the FT reports.

Read the full story in the Financial Times.

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