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Omni-channel operating model

IKEA Saudi Arabia: omni-channel operating model
Client IKEA
Region Middle East
Sector Retail and Consumer Goods
Offering Organisation Design
Operating model Organisation design

The Challenge

  • IKEA has been trading successfully in Saudi Arabia since 1983 from their traditional ‘big box’ stores. They have grown their retail estate steadily over the last thirty five years and have recently experimented with new store formats in response to changing customer demands and behaviours.
  • They have invested in their omni-channel offering but further effort was required to refine the offering and have an organisation set up to deliver it.
  • Q5’s project scope focused on the Service Office in Jeddah which housed all central functions supporting the four stores throughout Saudi Arabia and one new store opening in Bahrain.
  • The CEO and Management Team tasked us with assessing their Omni-channel maturity and restructuring the organisation to be able to meet the increasing cross-channel needs of customer and also reduce Service Office headcount costs significantly.

Our Approach

  • Q5 employed its Omni-channel maturity assessment methodology and toolset to provide IKEA KSA with an accurate and benchmarked appraisal of their maturity.
  • We designed a collaborative approach to combine improving their organisational efficiency with meeting their strategic aims.
  • We held a series of activity analysis workshops aligned to their value chain, through which we engaged the wider organisation and identified pain points.
  • With Management Team members as function owners, we worked through and defined the detailed organisation structures, key accountabilities and job descriptions.
  • We developed an implementation plan, along with key change management tools and major process changes to ensure a complete, practical handover.

Key Outcomes

  • An Omni-Channel maturity assessment, including process review and benchmarking study.
  • A co-designed operating model to structure the future organisation and aid communication to the wider organisation.
  • A detailed organisation structure representing a 15% saving in Service Office headcount.
  • Recommended accountabilities and capabilities across all role groups.
  • A recommended implementation approach, including change management tools.
  • A description of the key process changes across the organisation to enable the change and maximise the cross-channel ways of working.
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