News IKEA reopens its Shibuya store

IKEA reopened its renovated Tokyo Shibuya store on Tuesday. It features large digital displays and a focus on online shopping. This experimental store aims to help IKEA develop a global strategy for its urban locations. IKEA Japan President Petra Fare explained that the revamped Shibuya store will be a unique hub in Tokyo, complementing other IKEA locations and the online store. A large LED screen has been installed, measuring approximately 2.3 metres by 4.5 metres.

Customers can interact with the screen using a touch panel to view around 50 virtual rooms filled with furniture and other products in life-size detail. Customers can access details like price and a QR code, which links them to the IKEA online store for purchase by touching a product of interest. This screen-based shopping experience is a first for IKEA, both domestically and internationally, and the company is exploring the possibility of implementing it in other countries.

The Shibuya store has been a testing ground for various experiments since its opening in 2020. Since the decision to renovate was made last fall, a team from Europe that develops global store strategies helped put together a plan. Though IKEA is primarily known for its large suburban stores, it plans to increase the number of urban locations in city centres worldwide. It currently has 473 stores in 63 countries and regions, only 29 of which are urban. [...] The Shibuya shop's sign can be seen from the neighbourhood's famous "scramble crossing," the store is located just a couple of blocks away, increasing contact points with consumers. The Shibuya store sells about 2,700 products, less than 30% of a suburban site's sales. Urban stores can't display as many large products as suburban ones, and their sales per location are smaller. Despite this, IKEA is building more urban shops in anticipation of synergy with e-commerce.

Click to expand...

Paywall alert:

If it works, this would seem to be a great strategy for IKEA. With real estate at such a premium in cities, it's not reasonable for them to open a full-sized store in the city, where the money is. And I imagine not everyone wants to drive out to where the land is more reasonably priced for the retailers. When I lived in Japan, I was much less willing to drive the kinds of distances I do here in the USA, especially just to go shopping.