Ikea's move into Manhattan comes as many retailers — including Target, Kohl's and Macy's — are shrinking their existing full-size stores or experimenting with opening up smaller-format locations in densely populated markets such as Manhattan, Los Angeles and Chicago. As more and more shoppers are turning 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 rapidly 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 manager of Ikea's U.S. retail division, said in a statement. "New York City is the natural choice to open the first city center store — the most vibrant, dynamic city in the U.S., and the epicenter of retail, business, and culture."
Ikea said its new store in Manhattan will act as a "planning studio" for shoppers to pick out items they want delivered to their homes. It said it will offer lower-priced shipping and delivery for city dwellers, in addition to assembly services, help with financing and a buy online, pick up in store option.