IKEA Korea is pivoting toward smaller city stores, faster delivery and repair services as the country's weak housing market weighs on demand for big-ticket furniture.
Speaking at the IKEA Home Reimagine Media Day in Seoul, country manager Isabel Puig said consumer spending has shifted from full home redecorating projects toward making better use of existing spaces through smaller home furnishing purchases.
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The retailer reported revenue of KRW639.3bn in its last financial year, up 2.1%, while operating profit fell 41.3% to KRW10.9bn.
In response, IKEA Korea plans to expand compact urban-format stores of less than 1,000 square metres, located in mixed-use shopping centres. The company recently opened its first outlet inside Lotte Department Store in Gwangju.
Further openings are targeted in Incheon, Daegu and Daejeon by 2027, while larger out-of-town stores such as Gwangmyeong will remain part of the network.
The company is also strengthening its omnichannel offer through next-day delivery, click-and-collect, one-to-one interior consultations, and kitchen design and installation services.
Beyond furniture, IKEA Korea aims to widen customer touchpoints through food offers, seasonal menus and repair services. A repair programme is scheduled to launch at its Giheung store in July.
Puig said combining online convenience with physical store experiences remains important in Korea, where many customers research digitally before visiting stores to see products in person.
The strategy reflects how international home retailers are adapting to slower property markets by focusing on convenience, services and smaller-ticket purchases.
Source: www.biz.chosun.com
