IKEA Bang Yai pilots As-Is rebrand with Circular Shop launch

The Thailand store is testing a new solution to prolong the life of IKEA furniture through second-hand trade.

Each year around the world, millions of pre-owned furniture pieces in good condition go to waste.

To walk the talk on IKEA’s commitment to sustainability, IKEA Bang Yai in Thailand is piloting two new services – its Circular Shop and Recycling Centre. It took months of planning, design and renovations, and on 8 October both services were ready for the many.

The Circular Shop is the first of Ikano Retail’s store to rebrand the As-Is department –creating new awareness from IKEA’s established service of selling used display pieces at bargain prices while offering spare parts for free.

IKEA Bang Yai goes the extra step to offer a buyback-and-resell service so customers can give their gently used furniture a second life. This service is not yet part of the IKEA concept but this test will help other markets evaluate the solution.

“Sustainability is embedded in IKEA’s DNA. It’s something we consider in every process, from product design, material selection, services, and our store operations. As retailers, we’re trying our best. And we’re inviting our customers to join us in making small changes to create a more sustainable world every day.”

Tom Suter IKEA Bang Yai store manager

Around the store, green messaging adorns walls educating customers on circularity, sustainability, recycling and prolonging the life of its products, all to support IKEA’s journey towards becoming a Circular Business by 2030.

More options towards
a greener future

The buy-back and resell service takes in pre-owned IKEA products from customers in exchange for IKEA Gift Cards. The returned products are then sent for repair or refurbishment. They are then brought back to the store for sale to other customers looking for affordable products that remain fully functional.

But that’s not all.

The Circular Shop is dedicated as much as possible to keeping products out of landfills. Products that are not accepted under the store’s buy-back policy can find new hope with the store’s non-profit partner, the Wat Suan Kaew Foundation.

Meanwhile, the Recycling Centre sits at the first level of the store where customers can recycle trash to accumulate IKEA Family points. For every kilo of sorted recyclable waste such as paper, plastic, aluminium and other metals, and clear glass, customers receive points to exchange for cash vouchers for use at the store.

Within its first month of operating the Circular Shop and Recycling Centre, IKEA Bang Yai has had 140 customers use its buy-back service, while its Recycling Centre has received nearly 1,000kg of recyclable material. Elsewhere in our business, we are investigating other possibilities to encourage second-hand trade between our customers on online platforms.

“We can drive positive change by designing products that are affordable for everyone, choosing recycled materials to achieve a full cycle of resources. We are on our way towards zero waste, and towards a better tomorrow,” says Tom.