Ikea’s US expansion hinges on small-format stores

The news: Ikea said it plans to open eight small-format stores in the US this year.

• Seven of the new openings will be Plan & Order Point stores with pick-up points, which offer shoppers the opportunity to meet with Ikea staff for design and order assistance.
• The eighth store will be a pick-up only location in Santa Monica, California.

The strategy: Ikea is one of the many retailers turning to smaller stores to get closer to customers and reduce delivery costs. In Ikea’s case, they allow the company to establish a foothold in more densely populated neighborhoods, enabling it to achieve its goal of reaching shoppers where they “live, work, and socialize.”