The Swedish furniture giant is taking a different approach as it expands into the region by building more compact retail locations

IKEA, known for its awe-inspiring shopping complexes, has different plans for its expansion to Southeast Asia. Instead of sprawling furniture stores, the retailer is planning to build more compact spaces.

According to Retail News Asia, a prototype location is already operational in Phuket, Thailand. The 28,000-square-foot space is nothing compared to the usual IKEA store, which ranges from 200,000 to 450,000 square feet. For the Swedish furniture maker, this means smaller investments and the ability to open stores within crowded city centers. The move is a response to the growing middle class in the region.

In territories like the Philippines and Vietnam where there are no IKEA stores, original products can be bought from third-party distributors through e-commerce platforms like Lazada. Reclaiming online channels could be important for these newer IKEA stores who will keep less inventory on-site and will rely heavily on direct-to-home deliveries.

IKEA


Lead Image: Wikimedia Commons | CC | Image resized

IKEA, known for its awe-inspiring shopping complexes, has different plans for its expansion to Southeast Asia. Instead of sprawling furniture stores, the retailer is planning to build more compact spaces.

According to Retail News Asia, a prototype location is already operational in Phuket, Thailand. The 28,000-square-foot space is nothing compared to the usual IKEA store, which ranges from 200,000 to 450,000 square feet. For the Swedish furniture maker, this means smaller investments and the ability to open stores within crowded city centers. The move is a response to the growing middle class in the region.