IKEA, with its US headquarters in Conshohocken, is starting to experiment with a smaller footprint as it is opening its first-ever small, urban store on Tottenham Court Road in London this autumn, The Times reports.
In the U.S., large retail chains like Target have been experimenting with urban-format stores to increase reach with customers without having to find and pay to operate big footprints. If IKEA’s initial foray has promising early results, new U.K. retail director Javier Quiñones envisions further implementation of the concept across Europe, with other global regions possibly following, writes David King in Bisnow.
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The familiar showroom, that allows customers to view and test key products, will still be a feature in the downsized version, but the store won’t have in stock the full lineup of IKEA products.

he store would also be a more convenient pickup location, offering a middle ground between hauling purchases back from a big-box suburban location and paying for home delivery. IKEA has been investing heavily in its distribution network over the past few years to compete with Amazon’s delivery speed, and Quiñones hopes the smaller stores assist in the company’s initiative to roll out 24-hour delivery for all IKEA products in the U.K. next year, the Times reports.

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