3.5 C
Washington

Ikea could be headed to a mall near you

Date:

Share:



Malls have seen better days in the U.S., but Ikea is betting it has a way to lure people back.

The home good giant is reportedly actively looking to buy and develop a string of new malls in the United States (and other countries), that have both strong existing tenants as well as the potential to develop them further, according to a report in The Wall Street Journal.

Ingka Group, which operates most of the world’s IKEA stores, is overseeing the effort, expanding its already-existing catalog of 38 shopping centers across 15 countries. The malls typically have an Ikea store as an anchor, along with co-working spaces, children’s play areas and a Nordic-themed food court.

In the U.S., the company currently operates just one mall, located in San Francisco. (A Toronto location is the only other in North America.) While some parts, such as the Nordic food court, aren’t yet open, traffic to that mall has already increased, the company says.

A mall in London, though, saw traffic double over the course of the past year and has seen a surge in interest from other businesses.

The Ikea stores in malls are significantly smaller than the sprawling warehouses found in suburbs. That compact design was originally made to accommodate stores in city centers, where buying a huge land parcel is less affordable.

Ikea turned heads late last year when it announced plans to spend $1.1 billion on price cuts in the coming year.

“People have thin wallets, but they still have needs, dreams, and frustrations,” Juvencio Maeztu, Ingka’s deputy CEO and chief financial officer, told Fortune at the time. “That’s why Ikea has become a destination for those who want to maximize the value of their money. Ikea is made for crisis, so to speak.”

Subscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up for free.



Source link

Subscribe to our magazine

━ more like this

Joe Biden and Kamala Harris share how much they owed the IRS this year

The tax man comes for everyone—even the President. Joe Biden and First Lady Jill Biden had a federal tax bill of $146,629 for 2023,...

The internet really is a series of tubes

Hundreds of cables. Hundreds of thousands of miles. The internet runs, in vastly more ways than we realize or think about, through a...

How to Start Speaking Up: Find Your Voice and Be Heard – Tiny Buddha

“Your voice is the most potent magic in existence.” ~Michael Bassey Johnson In a noisy, crowded world, in a culture that promotes service to...

Baby boomers are redefining work in their 60s, 70s, and beyond with ‘unretirement’ plans: ‘We’re not our grandparents’ vision of retirees’

After 27 years working at Fidelity Investments, Nan Ives jumped at the opportunity to take an early retirement package at age 59. She...

Residents rush to save artifacts as blaze engulfs Copenhagen’s historic stock exchange building in devastating fire

A fire ripping through Denmark’s old stock exchange building has torn down the structure’s dragon-tail spire, a Copenhagen landmark. The protected 400-year-old building caught...