Extell’s Post

When you think of Fifth Avenue retail in New York, you might think of iconic luxury names like Saks Fifth Avenue, Tiffany & Co., Bergdorf Goodman, Christian Dior Couture and Cartier but guess who's joining these fine retailers on Fifth Avenue? None other than IKEA. Ingka Investments, the real estate arm of the Swedish retailer for apartment dwellers that prefer to assemble their own furniture is opening an 80,000-square-foot IKEA store at 570 Fifth Avenue, a tower being built by Extell Development. I'm sure IKEA will get a break on its rent from the landlord partnership. Rents averaged $2,000 a square foot on upper Fifth Avenue over last year, according to Cushman & Wakefield. That was about 13% higher than the world’s next-most-expensive shopping destination, Via Montenapoleone in Milan. New York City displaced Hong Kong in 2022 to top the highest retail rents for the first time since 2017.

Exciting news for urban development and retail innovation! This recent article from The Wall Street Journal shares how IKEA is transforming malls into vibrant hubs of creativity and collaboration. Our latest project with IKEA and Ingka Centres is more than just construction; it's about reimagining spaces for the future of work and community engagement.  By integrating coworking spaces within their stores, IKEA is setting a new standard for what our shopping centers can become - places where work, play, and retail converge to create thriving community centers. We're proud to be a part of this transformation, proving that with innovative thinking and strategic partnerships, we can redefine the urban landscape together. Check out the full article to see how these initiatives not only revitalize malls but also offer a glimpse into the future of multifunctional spaces:  https://lnkd.in/gZnVyDf6    #UrbanDevelopment #CoworkingSpaces #BuildingBetterTogether 

Let's hope that once the construction is completed, they don't have any leftover parts. At some point, IKEA decided that it needed a new challenge beyond 'assembly required' furniture and tasty Swedish meatballs. It may have chosen one of the hardest in retail - revitalizing shopping malls. And in the process, the furniture giant came up with a new mixed-use strategy. Growing up, the mall was the center of our meeting universe. Whether you were a teenager looking to hang out with friends after school or a busy professional shopping for a new outfit, the mall was the place to be. In many ways, IKEA wants to build a new kind of meeting place by adding co-working spaces, entertainment and dining facilities, and of course, a shopping center. Sound like a mall? That's the point, but IKEA is betting it can do it better especially with more immersive experiences. And it's betting a lot of Swedish meatballs on the new concept. IKEA is developing an alternative to its vast showroom superstores with a smaller footprint to create compact centers in dense downtowns. In fact, IKEA has 45 mall projects in Europe, Russia and China, and the company is also seeking to open malls in Toronto, Chicago, Los Angeles and New York. This comes at a time when many downtown areas such as San Francisco have seen an exodus of retailers https://lnkd.in/gNgppR6Y #ikea #retail #coworking #furniture #shoppingmall #officespace #realestate

IKEA, known for its innovative approach to retail, is revitalizing struggling malls worldwide through Ingka Group, its real-estate arm. Here's a glimpse into their strategy and impact: Innovative Mall Concept: Ingka Group anchors malls with IKEA stores and enhances them with co-working spaces, Nordic-themed food halls, and space-inspired children's play areas, offering more than just shopping. Addressing Decline: While many malls face declining foot traffic due to online shopping trends and consumer preferences, Ingka remains committed to the mall format, doubling down on its investments globally. Global Presence: With 38 malls across 15 countries, including recent expansions in China and plans for India, Ingka's mall empire continues to grow, catering to diverse markets. Strategic Acquisitions: Ingka targets malls with strong retail tenants and development potential, like the recent purchase in Brighton, England, demonstrating a keen eye for value and opportunity. Innovative Retail Model: By introducing compact-format downtown IKEA stores, Ingka taps into urban markets, leveraging IKEA's popularity to drive foot traffic and revitalize city centers. Adaptation to Changing Trends: Understanding the evolving consumer preferences, Ingka's focus on creating dynamic lifestyle centers ensures its malls remain relevant and attractive to modern shoppers. Community Gathering Spaces: Recognizing the shift towards experiential shopping, Ingka transforms malls into vibrant gathering places, fostering a sense of community and engagement beyond mere retail transactions. Resilience Amid Challenges: Despite the challenges posed by the COVID-19 pandemic, Ingka remains steadfast in its commitment to reimagining the mall experience, recognizing the urgency of adaptation in the face of changing consumer behaviors. In summary, IKEA's innovative approach to mall revitalization not only breathes new life into struggling formats but also creates dynamic spaces that cater to the evolving needs and preferences of modern consumers. With a global footprint and a commitment to innovation, Ingka Group continues to shape the future of retail destinations, offering more than just shopping but a holistic lifestyle experience. #wsj #ikea #realestatefinance #retail #shoppingmall #cre #icsc #cmbs https://lnkd.in/e7TDF_Kh

The retail landscape is undergoing significant changes, and Macy's recent store closures are a prime example. This movement is transforming traditional malls into dynamic multi-use complexes, creating a blend of residential, commercial, and leisure spaces. The shift means malls are no longer just about shopping. With the inclusion of residential apartments and office spaces, these areas are becoming community hubs and attractive lifestyle destinations where people live, work, and play. Additionally, the rise of e-commerce is altering how mall spaces are utilized. Many of these vacant stores are being repurposed into last-mile distribution hubs and pop-up shops, effectively blending online and offline retail experiences. The closures also offer a chance to create enhanced retail environments with augmented reality stores and showrooms, ensuring physical stores remain relevant by offering unique shopping experiences. The most crucial impact of Macy’s closures is economic revitalization. Transforming vacant retail spaces into vibrant hubs for living and working has the potential to create jobs, boost property values, and foster community engagement. This evolution marks an exciting new chapter for malls across America. Next steps by reaching out to Together CFO or setting up a call https://lnkd.in/gEhBUk3S.

Remember the retail apocalypse? From the collapse of Sears and Kmart, the rise of ecommerce, to the COVID-19 pandemic, we are always prophesying the end of brick-and-mortar retail. But, as the dust from the pandemic settles, and as retailers change tactics to accommodate rising e-commerce demands, we’re left watching a revival of in-person locations. Now that we know physical stores still have a place in retail strategies, it’s time to think about how exactly to optimize them. The news that IKEA's parent company is buying malls and adding co-working spaces, food halls, and other attractions, to address the new features that may drive customers to the shopping centers certainly caught our eye this week. The article by Business Insider by Alexander Bitter describes how Ikea stores in these malls have successfully adapted their digital and physical retailers strategies by creating spaces that take full advantage of their GLA for product discovery, but the actual store has very little inventory. As the future of the mall unfolds, it’s worth asking: how do real estate owners and retailers work together to design a space that fulfills the actual needs of our customers? https://lnkd.in/gsczrRRM - Follow here (NextRivet) for more insights. - Subscribe to our newsletter for weekly industry updates: https://lnkd.in/gdB3HCVM #Retail #proptech #commercialrealestate

*IKEA's change in property strategy to embrace communities and get closer to customers* Living in #Brighton, I know many in the city are curious to know IKEA's plans for our shopping centre. So what can we expect? As well as shopping, recent innovations elsewhere include after hours entertainment, maybe even a rave, a small format IKEA showcase, plus bookable retail space for others, and in an encouraging boost for the #circulareconomy here, renting useful household items. What would you like to see IKEA do with Churchill Square and is it a viable business plan? Article in comments. #communities #valuethroughinsight #retailinsights

People moves, M&A activity and new stores are the core themes in my edit of last weeks retail headlines. I'm sure the gloomy backdrop of stalling retail sales in October of -0.3% will not deter the positive sentiment and activity on the High Streets & in the Retail Parks.    Here's what I found interesting:    The Range plunges to loss but expects 'sustained growth' from now on IKEA owner Ingka acquires Brighton's Churchill Square shopping centre Majestic eyes 50 stores amid expansion drive wilko - Poundland rescue deal stalls with 15 former stores at risk Aldi give away free #Christmas lunches to those in need Staff responsible for 40% of #retail theft, report reveals Next defends chair in the face of shareholder rebellion Ex-Jigsaw boss Beth Butterwick joins Clarendon Fine Art as MD Avon to open standalone stores in the UK REVOLUTION BEAUTY upgrades guidance as it swings to profit Hammerson explores sale of stake in Bicester Village-owner B&Q owner Kingfisher plc unveils AI-powered DIY assistant Dr. Martens plc names new CFO The Body Shop snapped up by Aurelius in cut-price deal Asda slashes debt as sales growth slows Selfridges co-owner Central Group seize control as Signa faces financial crisis Morrisons accused of fleecing workers in pensions scheme changes Matalan hires ex-M&S digital boss for board role Iceland Foods suffers £17m loss as its energy bills soar almost £100m Amazon 'blocks' promotions for staff who don’t return to the office Amazon announces 100% of Europe packaging is recyclable Ocado Retail Ltd inks first tech deal outside of retail Hotel Chocolat bought by Mars in £534m deal BRC calls on chancellor to freeze business rates Dr Martens hires Apple exec as first ever chief brand officer Burberry issues sales warning as luxury demand wanes Next to close Bradford warehouse, 780 jobs at risk Iceland expands £1 price freezer offer to over 1,000 products HMV to reopen iconic Oxford Street flagship next week Halfords makes rescue bid for Wiggle Amazon to sell cars from next year   My story of the week: Ikea buying Churchill Square shopping centre must have raised a few eye brows. Is there a trend starting where "brands" are becoming landlords? Is this better for the broader customer? Let's hope Ikea can make Churchill Square "the wonderful everyday"!.   What caught your eye? #brand #marketing #strategy #cmo #customerexperience #ceo #retail

I believe that the modern types of flagship stores have a definite place in modern retail. #CustomerCentricity #CustomerExperience #DesignThinking #BusinessModels #HumanCenteredDesign #Innovation #Ideation #InnovationAcceleration #InnovationManagement #LeanDevelopment #ProductCreation #ProductDevelopment #ProductInnovation #ProductLifecycleManagement #LCM #R&D #Technology #turnaround #restructuring #strategicpartnerships #consultingservices  #strategicthinking #marketintelligence #strategy #strategic #capitalraising #capitalization#capital #innovateforchange #fundamentals #innovativesolutions #possibilities #sustainabilty #sustainableinvestment #businessconsulting #strategicplanning  https://lnkd.in/eFe762KX

Reimagining retail: with clever reimagining, reinvention and retrofitting of spaces, new life is being breathed into old stores, James Ainsworth, Partner at Workman LLP, writes in Completely Retail. Although reverberations of high-profile collapses are still being felt — from Debenhams and House of Fraser to Beales and Fenwick’s sale of its store on London’s New Bond Street, retail is not dead – it is embracing change. There is light at the end of the aisle – with retailers and leisure operators such as Zara, All Saints, Rituals, and King Pins expanding their presence across the nation. ZARA SA will be moving into the former Debenhams unit at Silverburn, Glasgow’s flagship retail and leisure destination, as reported by Completely Retail, with repurposing works project managed by our #BuildingConsultancy team. Spanning 47,000 sq. ft over two floors, the new store – which has been taken on a 15-year lease – will be one of Zara’s largest in Scotland, and twice the size of the brand’s existing unit at Eurofund Group's Silverburn. Works are already well underway, project managed by our #BuildingConsultancy team, in preparation for Zara to begin their own works later this year to create their new store. Read more here: https://bit.ly/3XhAzy4 #projectmanagement #retailandleisure