Ikea - From megastore to city concept

Now that the proportion of online spending is growing in the furniture industry, and trendy, online design brands such as Made, Joybird and Matt Sleeps are emerging, IKEA could no longer rely on its megastores. There is also the trend that an increasing number of residents of major cities such as London and Paris do not have a car and it therefore becomes much more difficult to visit the IKEA stores outside the city centre. This has led IKEA to experiment with city concepts. As Javier Quiñones, UK and Ireland country retail manager says, “What we are doing is looking at the future and how we can be where the consumer wants us to be.”

The city concepts not only bring the brand closer to more people; they also respond more to the needs of the customer. The fact that the new stores are intended to inspire does not make it a new concept. What makes it interesting is that IKEA makes choices within the categories of their range. For example, in May 2017, IKEA Temporary Dormitorios opened in Madrid's chic Salamanca district. This small shop (900 m²) sells only bedroom furniture and related items, and it’s a great customer experience. You put together your own PAX wardrobe system digitally based on questions about your lifestyle. You can have cupboards and chests of drawers printed with a personal design - from your own social media, for example - or have bedding embroidered with a personal text.
This way you can turn a standard product into a unique one!

The success of the bedroom version in Madrid led to a living room version in the same neighbourhood. There are now city concepts in several major cities: Stockholm (Kitchen), London (Planning Studio) and Paris. In all city shops, large items cannot be taken away simply because there is no room to store them. However, the products can be delivered at home and can also be assembled if desired.
With the roll-out to other cities it seems that IKEA has found a new formula to appeal to the trendy city dweller.