IKEA Canada wants to make shopping more affordable and sustainable with a new initiative and integrated campaign.

When shoppers pay HST on pre-owned goods, they are paying tax on a product for which the HST has, in fact, already been paid. The Swedish furniture giant used this insight to launch the Second-Hand Tax (SHT) initiative across its As-is Marketplaces in Ontario. From April 2 to 11, IKEA Canada will reduce the prices in its As-is section by 13%, thereby reducing the tax burden of IKEA Family members (the retailer’s loyalty program).

“As stewards of sustainability and affordability, IKEA Canada is invested in providing sustainable and affordable options for the many people,” Tanya Bevington, head of communications for IKEA Canada, tells MiC. “On the heels of investing in lower prices earlier this year, this was another opportunity to bring awareness to both circularity and affordability too.”

To get the word out about this initiative – and to hopefully start a national conversation about second-hand tax that goes beyond the coy acronym – IKEA is rolling out a multi-channel campaign.

First, the brand published open letters (below) in The Globe and Mail, Financial Post, Ottawa Citizen and Toronto Star announcing the initiative and inviting the government, and like-minded companies, to join IKEA in combating the double tax on second-hand items. Sponsored content is running in The Hill Times, directed specifically at the government.

“Engaging with government and business leaders in Canada is an important step for us to further the conversation. We’ve started this process and have engaged with external stakeholders to make them aware of the SHT initiative and will continue the conversation at our upcoming Public Affairs events this Spring. Our intention is to spark enough conversation to bring this forward to government – putting an end to the double tax on secondhand goods,” Bevington explains.

There is also in-store signage and audio advertising in Ikea’s As-is Marketplaces in-store across Ontario, urging Canadians to shop circular. IKEA chose Ontario for the pilot test because it was crucial for the retailer to conduct a campaign in a province that could maximize customer participation. “Given that Ontario represents the largest market in Canada, it was the logical choice. Moreover, Ontario’s utilization of HST provided a straightforward way to raise awareness about the confusing tax issue,” Bevington adds.

After the program ends, IKEA will also offer a nationwide Earth Month deal of 25% off its As-is items from April 12-14 and 19-21. The inititaive comes on the heels of the retailer investing $80 million to reduce prices on 1,500+ IKEA products.