IKEA Is Testing Smaller Stores
Your next trip to IKEA might be a lot faster than usual. Anyone who has ever shopped at the Swedish retailer knows that you can get lost in there for quite a while. The stores are so big and there are so many things to look at and buy, it is nearly impossible to just walk in and out of the store.
However, it seems that IKEA is going to test out some smaller stores. This is a direct result of a 40% drop in profits in the UK. The company was in the midst of opening a new store in the UK, which would have been the second largest in the country when they made the decision. Instead of opening a huge new store, they now will try some smaller stores.
The first smaller store is set to open this fall in Tottenham Court Road in central London. For the time being, the smaller stores will only be in the UK, but that could change based on the success of the smaller stores.
Richard Rands, the property manager for IKEA UK and Ireland, said: "Our decision is due to increased development costs and delays outside of Ikea's control which no longer make this location viable. We will continue to look for new sites and opportunities in this region."
The smaller stores are much easier to put together, as they can be ready in just six months. A full-sized IKEA can take anywhere between three to four years to build. Afterall, the average IKEA is 320,000 square feet. These smaller stores are going to be put in in city centers, that will serve as collection centers as well for online shoppers.
The bad news (aside from these not being in the U.S. – yet) is that these smaller IKEA stores will not sell their famous Swedish meatballs in their restaurants. So, what would you buy for lunch when you go?
H/T: Fast Company