Ikea, a Swedish furniture and home goods store, is set to expand its store front offerings. In a time when companies and brands are trying to lower their physical footprint, Ikea is diversifying its options by offering 3 different store formats: Plan and Order locations, e-commerce, and city centers.
First, we’ll start with the Plan and Order locations. What is so different about them than Ikea’s original stores? First, it is much smaller than 200,000 sq. ft. Since it is much smaller and cannot display its entire product assortment, these locations will serve as a design space where buyers can work with interior experts who can help plan, measure, and decide which furniture is a good fit for buyers’ homes. This is more personalized and customized than what Ikea’s ever initiated. It is quite different than entering a normal Ikea store where there are minimal sales associates and buyers’ are simply guided through a maze like-structure! These Plan and Order locations can create more of a personable and high-end atmosphere for Ikea’s consumers and can attract a new set of shoppers.
Next, Ikea is expanding and improving its e-commerce experience. As we know, the 2020 pandemic pushed many companies to innovate and move their services online. Ikea was no different and it had to experience growing pains. In order to stay competitive, Ikea has had to invest in its online platform as it was not originally placing too much emphasis on the e-commerce side; this company had to make its e-commerce experience as seamless as its in-store experience. Today, not only can Ikea’s customers shop online, it can be inspired by planning their desired rooms with interior design experts.
Lastly, Ikea is investing in City Centres. This particular format will be found strictly in urban areas, like big cities. Unlike the original store format, these stores are much smaller as they are not on a lot of land. These stores will carry limited and the most popular assortment of products. However, buyers can touch and feel each product and have that classic in-store experience; it will just be smaller but easier to navigate. Also, individuals living in urban areas generally like quick and uncomplicated experiences and Ikea is looking to serve this need.
Do these new store formats add a new value proposition to Ikea’s shoppers? Well, with this diversification, customers will receive more personalized experiences, already receive the convenience of online shopping, and it has entered a new urban market with its smaller store fronts where shoppers living in large cities do not have to drive 30 minutes to the nearest Ikea. This company has created a loyal fan base by combining affordability, style, and functionality so I believe its new endeavors will enhance the brand. I look forward to observing how Ikea navigates this new phase!
https://www.retaildive.com/news/ikea-new-store-formats/648706/
https://www.businessinsider.com/ikea-to-open-new-stores-urban-areas-cities-amid-pandemic-2020-10