Trappings retailer Ikea will shrink its typically massive store to open its first location in Manhattan with a new “big apple center” format in 2019, the company said Monday.
Next spring, Ikea will open its first smaller-format store in the U.S. at 999 Third Avenue in New York, where it will sit alongside Bloomingdale’s, Home Depot and CB2. The company previously told it planned to open 30 of these “city center” locations over the next three years.
Ikea has a stockpile in nearby Brooklyn, but this will be the first location on the island.
Ikea’s move into Manhattan comes as numerous retailers — including Target, Kohl’s and Macy’s — are shrinking their existing full-size stores or experimenting with split up smaller-format locations in densely populated markets such as Manhattan, Los Angeles and Chicago. As more and more shoppers are form to the internet to ring up purchases, companies are finding they don’t need as much real estate.
“We recognize that we are in a right off the bat changing retail environment, and to be fit for long-term growth, Ikea is transforming in a way that lets us meet our customers where they are,” Lars Petersson, the executive of Ikea’s U.S. retail division, said in a statement. “New York City is the natural choice to open the first city center stockpile — the most vibrant, dynamic city in the U.S., and the epicenter of retail, business, and culture.”
Ikea said its new store in Manhattan wish act as a “planning studio” for shoppers to pick out items they want delivered to their homes. It said it will extend lower-priced shipping and delivery for city dwellers, in addition to assembly services, help with financing and a buy online, pick up in assemble option.