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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

Can IKEA save the mall? An interesting article in The Wall Street Journal (link in comments) takes a look. While it is best known for those giant blue and yellow home furnishings stores, Ingka Group - the operator of most IKEA shops worldwide - is expanding its mall empire. It is anchoring the spaces with IKEA stores and incorporating attractions such as co-working spaces, Nordic-themed food halls, and imaginative children’s play areas. The strategy reflects a broader trend away from traditional retail-centric malls, with consumers increasingly seeking multifaceted experiences that go beyond just shopping. Some interesting points: 🇸🇪 Ingka opened its first mall, or meeting place as it calls them, in 1973 in Sundsvall, Sweden, together with an IKEA store. 🏬 Ingka Group now operates 38 malls in 15 countries. 🚶🏼♀️US mall foot traffic decreased by 4% on average in 2023 compared to the previous year, with a 12% decline from 2019 levels, according to Green Street. 🇬🇧 Traffic at Ingka's London mall nearly doubled in the past year, highlighting the success of its revitalization efforts amidst broader industry challenges. More in the article in the comments! #retail #malls #IKEA #furniture #shopping

1. Compact Urban Stores: IKEA has introduced smaller, 500 sq ft units in city centers, making it more accessible for people who rely on public transport and don’t own cars. 2. Argos-Style Shopping Model: Customers can pop into the store, pick up their furniture, and easily carry it home, catering to urban dwellers who need convenience and practicality. 3. cquiring Shopping Malls: IKEA is strategically acquiring shopping malls, such as Churchill Square in Brighton, allowing them to become anchor tenants. 4. Boosting Footfall: By positioning themselves as the anchor tenant, IKEA attracts foot traffic, which benefits both their stores and other retailers in the mall. 5. Dual Revenue Streams: IKEA is generating income not only from selling furniture but also from leasing space to complementary retailers within the malls they own. 6. Revitalising Unused Retail Space: Their strategy boosts the use of underutilized shopping centers, bringing new life to retail spaces. This innovative approach ensures IKEA stays relevant in urban markets and continues to grow in a changing retail landscape. What are you the most surprised that IKEA are doing? For me, its buying up shopping malls… although they are a cheap investment! #wealthmanagement #wealthmindset #wealthmanagemen #wealthbuilding #realestatelife #realestate #propertymarketuk #propertymanagement #property #passiveincome #investments #investmentproperty #investment #investing #financialliteracy #financialfreedom #financialeducation #finance #entrepreneur #cre #commercialrealestate #commercialproperty #commercial #ukcommercialrealestate #commercialpropertyuk

* Community-Led Retail Model vs Commerce-Led Retail Model

IKEA's Brighton Store: A Sustainable Approach… As the eagerly anticipated Ikea store prepares to open its doors in Brighton, the company has unveiled a sustainable approach to its operations. To accommodate the growing popularity of click-and-collect services, the Ingka Group has decided to repurpose a portion of the adjacent multi-storey car park. Instead of traditional parking spaces, this area will be transformed into dedicated collection bays. This innovative move aligns with the council's broader sustainability goals, encouraging residents to opt for more environmentally friendly transportation options. By reducing the number of vehicles on the road, the company aims to contribute to a cleaner and healthier city. While the loss of some parking spaces may be a minor inconvenience for shoppers, the benefits of this sustainable solution undoubtedly outweigh the drawbacks. The convenience of click-and-collect shopping combined with Ikea's commitment to reducing its environmental impact makes this a positive development for the local community. https://lnkd.in/eAyqYAmM #economy #innovation #business

*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

𝗪𝗲𝗲𝗸𝗹𝘆 𝗥𝗲𝘁𝗮𝗶𝗹 𝗨𝗽𝗱𝗮𝘁𝗲: Can IKEA save the mall? While best known for its giant blue and yellow home furnishings stores, Ingka Group - the operator of most IKEA shops worldwide - is expanding its mall empire. Their strategy includes anchoring spaces with IKEA stores and incorporating attractions such as co-working spaces, Nordic-themed food halls, and imaginative children’s play areas. This reflects a broader trend away from traditional retail-centric malls, with consumers increasingly seeking multifaceted experiences that go beyond just shopping. Did you know that Ingka opened its first mall, or meeting place as it calls them, in Sundsvall, Sweden, in 1973 together with an IKEA store? Today, Ingka Group operates 38 malls in 15 countries. In contrast, US mall foot traffic decreased by 4% on average in 2023 compared to the previous year, with a 12% decline from 2019 levels, according to Green Street. Despite industry challenges, the traffic at Ingka's London mall nearly doubled in the past year, highlighting the success of its revitalisation efforts. Maybe they are about to change the mall game, after all. #retail #malls #IKEA #furniture #shopping #consumer #weeklyretailupdate

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

🌟 Exciting News from IKEA: Reinventing the Mall Experience! 🌟 While many malls are facing challenges, #IKEA is pioneering a fresh approach to revitalize the traditional format! Ingka Group, the powerhouse behind most of the globe's IKEA stores, has been strategically building its own #mall #empire. With locations spanning from China to Europe to the U.S., IKEA aims to breathe new life into malls by offering more than just retail. Their vision? Transforming malls into vibrant community hubs. "We're creating destinations that offer more than just shopping," shares Cindy Andersen, Managing Director of Ingka Centers, IKEA's real-estate arm. "By integrating co-working spaces, themed food halls, and innovative play areas, we're giving people compelling reasons to visit." In an era where online shopping and outdoor venues are increasingly popular, traditional malls have seen declining foot traffic. Yet, IKEA remains undeterred, doubling down on their commitment to the mall concept. Despite recent divestments, Ingka still oversees 38 malls across 15 countries, with plans for further expansion. Their strategy is simple: anchor malls with an IKEA store and enhance them with diverse attractions. Take IKEA's recent acquisition in Brighton, England, for example. By leveraging existing retail tenants alongside the potential for development, they're creating value and transforming spaces, with the end product being a unique retail experience. But IKEA's ambitions don't stop there. They've announce upcoming openings in Shanghai, Xi’an, and their first venture into India in 2025. In North America, they're already making waves with successful operations in Toronto and San Francisco. At the heart of IKEAs approach is recognizing the evolving needs of consumers. Today's shoppers seek experiences, not just transactions. By positioning their malls as lifestyle centers, they're meeting this demand head-on. They believe in creating gathering places where communities can thrive. What sets the Ingka Group apart? Their iconic IKEA stores, renowned for their popularity and draw. Coupled with their innovative approach to mall design, they're confident in their ability to redefine the mall experience. As they roll out compact-format IKEA stores in urban centers worldwide, they're not just transforming malls – they're shaping the future of retail. Their commitment to innovation and adaptation remains steadfast, ensuring our malls remain vibrant and relevant in an ever-changing landscape. What do YOU think? Can IKEA save the mall? (Enjoy one of my favorite videos while you think about it)