Ikea appears to be activity all-in on its action to allure added burghal millennials by inching added abroad from its iconic warehouse-like spaces — at atomic in part.
Earlier this month, the Swedish home appurtenances banker began architecture on a new abundance abstraction in Vienna, Austria. The seven-story building, amid at the Westbahnhof alternation station, is set to be completed by 2021, according to the company’s website.
However, clashing acceptable Ikea locations that animate consumers to appear to food and booty their purchases abroad with them, this abundance takes a altered approach. With no parking lot in the plans, the Vienna area comes in abrupt adverse to its barn counterparts (like the Burbank, California, abundance that has 1,700 parking spaces).
“The abstraction focuses on the accepted megatrends and takes into annual the badly afflicted arcade behavior as able-bodied as a new anatomy of advancement after a car,” the aggregation said on its website. “Customers accept little time and acknowledge convenience.”
Though shoppers will be able to airing out with some items in hand, articles accounted too ample to backpack home will be delivered to them aural 24 hours, the aggregation said.
Ikea afresh activated smaller-format food with its burghal planning studios in Paris, London and best afresh on New York’s Upper East Side. The food action consumers the befalling to sit bottomward with a adviser to apprentice about Ikea’s articles and plan out a architecture project. What they don’t action is the adeptness to airing out of the abundance with merchandise.
The Vienna abundance may adjust afterpiece with a planned area in New York’s Queens borough, which is set to accessible ancient this summer. That area is about a third of the admeasurement of a acceptable Ikea store, but allows consumers to acquirement items both in abundance and adjustment for delivery.
Ikea’s action to allurement a adolescent set of barter active in cities has afresh acrimonious up. Last June, the banker partnered with startup Ori to body out automatic appliance that helps allay the pains of active in bound spaces, and above-mentioned to that Ikea appear it would activate testing appliance leasing options in 30 markets this year.
The altercation appointment on RetailWire asked its BrainTrust console of retail experts the afterward questions:
Would it accomplish faculty for Ikea to accessible food in U.S. cities that accept no parking lots?
Do you see added retailers aperture concepts that await on aircraft items ordered in food to the homes of customers?
Here are seven of the best astute comments from the discussion. Comments accept been edited by Retail Dive for breadth and clarity.
Gene Detroyer, Professor, International Business, Guizhou University of Finance & Economics; Executive Director, Global Commerce Education: We accept a new Ikea not far from area I am currently in NYC. There are no parking spaces. But why do you charge them? They will bear aggregate you buy.
Before we had Ikea in the city, we bought an Ikea kitchen in NJ. We busy a car (I haven’t endemic a car for 15 years, yea!) collection out and best out the components. They delivered everything, from the aboriginal to the largest.
In Manhattan, this is not a new phenomena. It seems everybody delivers and has as continued as I accept lived here.
Michael Terpkosh, President, Burghal Aboveboard Partners LLC: I too adulation this concept. The multi-generational acknowledgment to burghal cores makes this blazon of abundance a abundant fit for U.S. busline areas. As babyish boomers retire they don’t appetite to accept to lug about big, abundant boxes. Abnormally if they can get commitment and set-up. Young ancestors appetite the accessibility after the diaphoresis and after active to the store. I see this as a win-win for all parties.
Bob Amster, Principal, Retail Technology Group: If Ikea (and any added retailer) can consistently bear as promised, the burghal food can advance after parking lots or garages. Trends are changing. Today’s activity force wants to alive in burghal areas, canal the automobile, airing or booty accessible transportation. That all spells out that alike retailers of appliance can do business in burghal areas and everybody (the consumer, the retailer, and the environment) wins.
Kenneth Leung, Retail and Customer Experience Expert: I anticipate this makes faculty because of the accessibility factor, some bodies appetite to boutique abutting to home or online rather than drive out from burghal centers. Acclimatized a lot of Ikea’s ambition admirers is baby home in burghal areas, with a able commitment network, a area after parking on top of a alteration apple should assignment well.
Georganne Bender, Principal, KIZER & BENDER Speaking: Ikea sells a lot added than furniture, it sells home decor, accessories and grocery items. I can’t allege for what goes on in added countries but I can acquaint you that actuality in the U.S. bodies still drive. Maybe not in big cities, but absolutely in the suburbs.
Consumers go to Ikea because we can booty what we buy home with us that day. You can’t get abreast the Ikea abutting to my house, abnormally on weekends, because the parking lot is consistently abounding to capacity. I get that Ikea is aggravating to advice the environment, and I acclaim that, but that’s not how bodies boutique here. Why blend with success?
Richard Hernandez, Director, Affiliated Foods, Inc.: This is absolutely an absorbing architecture — it seems a lot easier to boutique and like a bigger advantage for burghal areas, but as Georganne mentioned, this is not how the burghal client shops Ikea. The Ikea abutting to me is arranged appear the end of the anniversary and all weekend. Maybe there could be an average architecture that would still action the best of this architecture and the best of the 300,000 aboveboard bottom format?
Ken Lonyai, Consultant, Strategist, Tech Innovator, UX Evangelist: Presuming that there’s affection analysis abaft this, it makes faculty to me. Parking lots/decks are above costs and lots are a absolute bane in cities. Consumers are actuality offered options, so it’s account a real-world try.
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