IKEA to test new shopping structures in lieu of first IKEA City store
IKEA says it is actively investing in new formats of retail experience, and has recently upgraded the Beicai store in the Pudong New Area with 6,700 square meters of new community neighborhood-style showroom space to upgrade physical meeting points in Shanghai.
The new Shanghai IKEA LIVAT center is also on track to be operational in 2024 with new formats and a new shopping experience to be added to the city.
The LIVAT center will be a one-stop shopping complex hosting fashion & style, leisure & restaurants, education & sports, in addition to other entertainment venues.
It will be adjacent to the Beiheng Road within the Hongqiao Linkong Business Park in Changning District.
Meanwhile, the first IKEA City store in Jing'an District will cease operation by the end of this year following a more flexible operation model to test new shopping structures.
The three-story, 3,000-square-meter outlet on Nanjing Road W., which opened in mid-2020, was designed to attract office workers and more frequent visitors, compared with other IKEA locations on the outskirts of the city.
"After a thorough evaluation of IKEA's overall layout in the Shanghai market and the long-term viability of the store, we will end the trial operation of the Jing'an City store to ensure that IKEA is able to adapt itself in a flexible and resilient manner to optimize its resources and create more value," the company said.
"The completion of the IKEA Jing'an City Shop trial does not mean we will stop our new explorations in Shanghai and the China market," the company continued, adding that it is using all it has learned to better plan and continue to deploy new initiatives with more relevance to customers' needs.
The trial operation fulfilled its roles by bringing home furnishing products, solutions and inspiration to a wider and more diverse group of consumers, as well as gaining a deeper understanding of consumers' needs, preferences and habits, the company added.