Ikea eyes new stores in Tokyo, Osaka
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Ikea Japan says it plans to expand its store network into city centres after the success of its large-format stores in outskirt locations.
Ikea Japan K.K. president Helene von Reis said in an interview that the company will open “many shops in Tokyo” given the city’s size.
“Then we will move into Osaka. We have to start first and understand how this works in Tokyo.”
She had earlier said during a press briefing that Ikea Japan was working hard to find the right sites in Tokyo. “Hopefully I will be able to give you some good news before this year is over.”
Ikea Japan’s strategy to head downtown is a contrast to its European experience where it has decided to close smaller city stores after an unsuccessful trial.
Von Reis said the company recognised customer preferences are changing.
“Consumers are demanding accessibility and the value of time. It is also a fact that young people don’t have cars. That’s also a global [phenomenon].”
She said the company believes there is a lot of growth potential for the home furnishings market in Japan.
Questions & Answers
Q.What is Ikea's overall strategy for expanding its store network in Japan?
What is Ikea's overall strategy for expanding its store network in Japan?
Ikea Japan plans to expand its store network by opening new shops in city centres, starting with Tokyo and then moving to Osaka. This follows the success of its existing large-format stores located in outskirt areas.
Q.Why is Ikea Japan shifting its focus to city centre locations?
Why is Ikea Japan shifting its focus to city centre locations?
The company recognises changing customer preferences, with consumers demanding better accessibility and valuing their time. Also, many young people in Japan, mirroring a global trend, do not own cars, making city centre locations more viable.
Q.Has Ikea had success with smaller city stores in other regions?
Has Ikea had success with smaller city stores in other regions?
No, Ikea's strategy to head downtown in Japan contrasts with its European experience. There, the company decided to close smaller city stores after an unsuccessful trial period, indicating this approach has not always worked elsewhere.
Q.When can we expect an update on new store locations in Tokyo?
When can we expect an update on new store locations in Tokyo?
Ikea Japan's president hopes to share good news regarding finding suitable sites in Tokyo before the current year concludes. The company is actively working to identify appropriate locations for its planned city centre expansion.
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