Ikea opens small-format retailer in subdued San Francisco downtown By Reuters


© Reuters. A view exhibits a window of an IKEA Retailer in San Francisco, California, U.S., August 22, 2023. IKEA opens a San Francisco retailer on August 23. The transfer comes as different huge retailers have pulled out of town, which has been sluggish to get better from the pandemic.


By Marie Mannes

(Reuters) – Swedish flat-pack furnishings large Ikea opened its doorways to a brand new retailer in downtown San Francisco on Wednesday, bucking the development of massive retailers resembling Nordstrom (NYSE:) and Previous Navy closing outlets amid falling foot visitors and rising crime within the metropolis.

Ikea, identified for its suburban warehouse-like shops, is pushing extra in-city outlets and selling its on-line shops, as buyers purchase extra from marketplaces resembling Amazon.com (NASDAQ:).

The opening, although, comes as San Francisco’s crises of medicine and homelessness have worsened, resulting in vacationers and enterprise guests staying away and depleting the ranks of buyers who as soon as sustained a vibrant downtown.

Giant tech firms have laid off staff and many individuals are nonetheless working from dwelling.

Tolga Oncu, head of retail at Ikea retailer proprietor Ingka Group, mentioned the corporate had strategized with safety companies on how you can place the entry and exit of the shop and brought measures to cease crime with out the presence of lots of guards.

The brand new Ikea small-format retailer goals by subsequent 12 months so as to add a meals deli, a co-working house, and areas for different retailers to lease. Ingka Group has launched the same mannequin in Hammersmith, London, with an Ikea retailer inside an Ingka shopping center.

“We’re feeling very assured in our metropolis method, it is vitally complementary to our present Ikea presence in that market,” Oncu informed Reuters.

“We opened a retailer in shopping center Gallerian in Stockholm final 12 months, which has contributed to a 50% enhance in bodily visitation to Ikea in a really mature market,” he mentioned.

Ingka Group, the principle franchisee to model proprietor Inter IKEA, purchased the San Francisco location in 2020 and had deliberate to open the shop within the autumn of 2021. Ingka owns all Ikea shops in america and Inter Ikea is accountable for provide.

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