IKEA experimenting with linear store format, may extend to other markets

Amhult (Sweden), Aug 21 (PTI) Swedish furniture retailer IKEA, in order to push its growth further, is experimenting with a new format of stores that are smaller in sizes but accessible to consumers in smaller towns.

The project, internally called as "BARN" concept, has the potential to open hundreds of new locations across markets including India where it operates, said Ingka Group Retail Manager Tolga Oncu here.

Ingka Group operates IKEA stores in 31 countries including India.

The concept, which is at the 'initial pilot phase' will merge with IKEA's omni-channel offerings as one of many customer meeting point formats around the world, if it is successful.

IKEA is piloting this concept, in which stores size could range from 2,000 to 10,000 sq mts at five locations across UK, Texas, and Poland.

"This format is designed to be faster and more cost-effective to open, while still offering thousands of products and planning services. The goal is to create a simpler and more efficient shopping experience," said Oncu.

According to Oncu, the goal is to create a simpler and more efficient shopping experience and offer the IKEA experience in a different way.

"Initial feedback has been encouraging, and we are optimistic that this format could help us expand into new locations and make IKEA more accessible to a wider audience. We are gathering learnings and results from these pilot stores and expect to have a clearer picture by the end of the year," he said.

About India, Oncu said IKEA is already working with a simplified expansion approach, focusing on cost consciousness and operational efficiency.

"We will continue to refine and adapt these principles to suit the Indian market based on the learnings of the new format pilots to make IKEA more accessible and efficient in India," he said.

IKEA, which has recently opened a store in Delhi, has started retail operations in India in 2018 with its Hyderabad store. PTI KRH HVA