Research On The Evaluation Of IKEA’s Financial Performance Under The New Retail Business Model

Together with you are the traits and development of Internet+,big data,artificial intelligence and oter of technology,the structure of human consumption and the concept of have ben change silentli implications.Thus,the traditional retail industry is confronted with a series of iterative and upgrading challenges.The state has repeatedly issued policy documents to support retail enterprises to innovate their business models,so as to actively respond to the requirements of the current era of transformation and upgrading of retail enterprises.Ikea is a typical representative of the new retail industry,which plays an important role in the development of the new retail industry and other traditional retail industry.New retail is a kind of emerging management mode,its development history is still very short,the relationship between it and the financial performance of the enterprise research is few.Therefore,through the study of IKEA’s new retail model,this paper combines its practice and financial performance to explore the impact of new retail on IKEA’s financial performance,find out the advantages and disadvantages of the current new retail model,and provide reference for other retail companies.The transformation of new retail is an inevitable trend.However,the household furnishing industry represented by IKEA has the characteristics of single business form and single channel,so the enterprises dare not to carry out the transformation hastily,but the disadvantages of its traditional business model are gradually prominent.Using the method of case analysis,this paper introduces the general situation of IKEA under the new retail business model,mainly introduces the basic situation and development process of IKEA,as well as the transformation motivation and transformation content of the new retail business model,and makes a horizontal and vertical analysis of the financial performance of IKEA from the perspective of the specific content of the new retail business model.The profit,operation and development ability of IKEA are evaluated respectively from the characteristics of the new retail of IKEA.Since the new retail mode of IKEA is not closely related to its solvency,the analysis is not carried out in this paper.Finally,EVA method is used to evaluate the financial performance of IKEA.And compare with the same industry,study its effect.The study found that the development of the new retail business model has played a positive role in the improvement of IKEA’s financial performance,but there are still some risks and uncertainties,such as high cost,delayed collection of accounts receivable and other problems.Therefore,the paper also puts forward some suggestions for these problems.Finally,it provides inspiration and suggestions for the financial performance of IKEA brought by the new retail business model.According to the analysis of IKEA in the above chapter,it provides inspiration and suggestions for other retail enterprises in the transformation of new retail.Other enterprises in the home furnishment industry should learn from the transformation strategy of IKEA,and at the same time,they should comprehensively consider their own scale and financial situation,find out their own transformation methods,and bring new profit growth points for enterprises.