One of the crucial aspects of the chancellor’s Budget was the commitment to raise the living wage for over 25s to £9 per hour by the year 2020, a rise from the current rate of £7.20.
Our immediate post-Budget research showed the policy to be very popular – across supporters of all of the main political parties. Eight in 10 (80 per cent) said the policy was a good idea, while just nine per cent believed it to be the wrong priority at this time.
In recent days, one brand which has announced it is embracing paying staff the living wage at the very least, is Ikea.
The Scandinavian giant becomes the first national retailer to commit to this standard of staff pay, which will benefit more than 4,500 employees.
Ikea believes the move makes good business sense; viewing it as an investment in employees, and a way to create a positive environment for shoppers to enjoy.
It also complements the already positive yet quirky image Ikea has built-up in the near three decades it has had a presence in the UK.
YouGov BrandIndex data underlines how popular Ikea already is among UK consumers.
Ikea is currently comfortably in first place out of 45 brands in our Buzz score rankings list of general retailers, indicating the public has heard consistently positive news about the brand.
Price remains at the core of Ikea’s appeal. Its value score is a healthy figure of 32. YouGov’s satisfaction metric also hints at Ikea’s enduring appeal; the current score stands at a strong 40, indicating that the products bought at Ikea have found happy homes.
One issue the company will be looking to tackle in the next 12 months is that of accessibility.
With many consumers being put off by long drives to out of town retail parks, Ikea wants to increase its presence on the high street, with smaller store formats. Consumers have clearly been won over by the business’ key appeal; the challenge is to reach more customers in a modern and innovative way.
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