Putting the Value in Value Engineering

IKEA’s stores are iconic. In order for their massive size and layout to work for consumers, every detail needs to be considered, right from the beginning of the architecture & engineering process. Low costs are the cornerstone of the IKEA vision, business idea and concept, so the company is constantly trying to do everything a little better, a little simpler and always cost effectively. IKEA turned to WD to review their existing store prototype and to reduce overall cost for the buildout of their Oak Creek, Wisconsin store.

Don’t Change the Blue and Yellow Bags… or the Current Customer Experience

Some of the challenges in generating savings related to IKEA’s store prototype was retaining the current customer experience and maintaining the substantial brand equity. We certainly weren’t going to propose removing the restaurant and those famous meatballs.

Using several of our subject matter experts, we did a peer review of IKEA’s current design and found several opportunities for savings, including within the building structure, architecture, overall layout of the space and construction timeline. Our use of BIM technology identified additional opportunities for more efficient design strategies.

IKEA

Minimalist Furniture Deserves Maximum Buildout Cost Savings

In addition to savings opportunities related to the building itself, we streamlined communication efforts by defining decision makers from both client and agency and funneled feedback and changes through one person.

By the time the project was complete and the Oak Creek IKEA opened its doors, WD exceeded IKEA’s savings goal of 4% for the project by reducing prototype buildout costs by 8%. The store ended up measuring 290,000 square feet. By keeping construction costs down and staying true to IKEA’s building form, we helped IKEA achieve its goal of doing things a little bit better. Complete with cost savings, and of course, the meatballs.

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