IKEA’s Retail Revolution: Why Sharing Store Space is the Future
IKEA, the global furniture giant, is embarking on a significant shift in its retail strategy, moving beyond its traditional standalone “blue box” model. The company is now actively piloting partnerships with other retailers, integrating them directly into its stores. This isn’t just about filling empty space; it’s a calculated move to attract a wider range of customers and adapt to evolving shopping habits.
The UK Pilot: Decathlon Joins Forces with IKEA
The first major UK example of this strategy is the upcoming opening of a Decathlon store within IKEA Croydon this spring. The Decathlon unit will span 1,188 square meters, complete with its own dedicated customer entrance, within the larger 25,000 square meter IKEA store. This partnership aims to create a one-stop shopping destination, catering to both home furnishing and sporting goods needs.
Beyond the UK: A Global Trend Emerges
The UK isn’t an isolated case. Ingka Group, the owner of most IKEA stores, is testing this concept in multiple markets. In Austria, a substantial 2,600 square meters within the Klagenfurt store will be available for other retailers following a major renovation, slated for completion in fall 2026. Discount home and garden specialist Thomas Philipps is among the retailers expected to take space. Sweden is also participating, with a pilot program featuring Kjell & Company, a consumer electronics retailer, in Stockholm and Kalmar stores since late 2025.
Why is IKEA Doing This?
This shift is driven by several factors. Ingka Group reported its lowest annual sales since 2021, indicating a need to revitalize foot traffic and revenue streams. Renting space to complementary brands allows IKEA to monetize its existing square footage and attract customers who might not otherwise visit. Javier Quinones, Ingka Group’s commercial manager, explained that complementary offers can encourage more people to visit stores and engage with products in new ways.
The Rise of the ‘Retail Hub’
IKEA’s strategy reflects a broader trend towards the creation of “retail hubs” – destinations that offer a diverse range of products and experiences under one roof. This model caters to consumers seeking convenience and a more holistic shopping experience. It also allows retailers to share costs and reach a wider audience.
Did you know? IKEA has been actively revamping its store formats over the past decade, developing smaller inner-city stores and showrooms alongside investing in digital services.
Investing in the Future of Retail
Ingka Group is backing this strategy with significant investment. The company is investing over EUR 5 billion between FY24-26 in both new locations and improvements to existing stores across its 32 markets. This demonstrates a long-term commitment to adapting to the changing retail landscape.
Circularity and Enhanced Customer Experience
The Decathlon partnership also emphasizes circularity, with services like Buyback to keep high-quality gear in use. This aligns with growing consumer demand for sustainable shopping options. The goal is to create a seamless shopping experience, offering services like Click & Collect alongside the in-store offerings.
Frequently Asked Questions
Will this change the IKEA shopping experience?
IKEA aims to enhance the experience by offering more variety and convenience. The goal is to create a destination where customers can find everything they need for their lifestyle, both inside and outside the home.
Are there plans to roll this out to all IKEA stores?
Currently, these are pilot programs. IKEA will evaluate the success of these partnerships before deciding on wider implementation.
What types of retailers might we see in IKEA stores in the future?
IKEA is looking for brands that offer complementary products and services, appealing to a similar customer base and sharing a commitment to value and quality.
Pro Tip: Keep an eye on IKEA’s announcements for updates on new partnerships and store revamps. This represents a rapidly evolving strategy.
What are your thoughts on this new retail model? Share your opinions in the comments below!
