Ikea's parent company Ingka Group is betting big on shopping malls
Why this matters
It is a counter-intuitive move, as many retailers are downsizing their physical presence in favor of online sales. However, Ingka Group believes that physical stores have a bright future - and they plan to open over 70 department stores by 2025.
Ingka Group's strategy
Ingka Group's strategy is based on the idea that shopping malls are still a major destination for consumers. While online shopping has become increasingly popular, physical stores are still the preferred choice for many people. Ingka Group plans to capitalize on this demand by opening new stores in malls. The new stores will be smaller than traditional IKEA stores, but they will still offer a wide range of products. They will be located in key shopping malls in major cities around the world. Ingka Group is also investing in new technologies to improve the customer experience in its physical stores. It plans to use AI to help customers find products, and it is also developing new ways to make checkout faster and easier.
Increased foot traffic
Ingka Group believes that its new stores will drive traffic to shopping malls. The company points to research that shows that shopping malls with IKEA stores have higher foot traffic. This increased traffic can benefit other retailers in the mall. Ingka Group hopes that its new stores will help malls compete with online retailers.
Expansion plans
Ingka Group plans to open over 70 new department stores by 2025. This expansion will be spread across 15 different countries. The new stores will be located in major cities such as New York, London, and Shanghai. Ingka Group is also planning to open new stores in smaller cities. It believes that its new stores will help to revitalize shopping malls and bring customers back to brick-and-mortar stores.
Conclusion
Ingka Group's bet on shopping malls is a bold move. However, it is a well-calculated move. The company has a strong track record of success, and it has a deep understanding of the retail market. Ingka Group believes that shopping malls still have a future, and it is investing in that future.
Comments