Ben Gilbert: belief

Transcript context

…Including San Francisco. It’s this smaller set of products. It’s pretty interesting observing this trend toward urbanization and trend toward buying online. As of 2014, they still don’t really have e-commerce. On the one hand, maybe that’s the right strategy. Maybe they never should have done e-commerce. I don’t really know. Because they’re not a public company and because they don’t break out segments, we don’t really get to know if e-commerce is a profitable business for them. What we do know is that over time, their revenue keeps growing. At least if you look at Ingka, the operator of these stores, their operating profit does not. In fact over the last several years it’s been declining. As a percentage of their revenue, the operating profit of these stores is going down. David, I think where you’re going with this is they really start going down, once IKEA does meaningfully start investing in e-commerce, starting in 2018 is when they really put their foot on the gas. And today, 2024, e-commerce is 26% of revenue.…

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