(LEAD) IKEA Korea opens 8th outlet, eyes sales growth

IKEA Korea, a subsidiary of the Swedish furniture giant IKEA, inaugurated its eighth store in Daegu on September 17, 2024. The new store, situated within Shinsegae Department Store close to Dongdaegu Station, aims to serve the customers in Daegu and North Gyeongsang Province. The decision to open in Daegu stems from the company's recognition of the city's high customer interest and brand appeal, according to IKEA's Chief Executive Officer Isabel Puig during a press conference.

During its ten-month operation from 2023 to July 2024, IKEA's pop-up store in Daegu attracted around 200,000 visitors.

IKEA intends to continue diversifying its sales channels beyond traditional blue-box stores and urban-format stores to online platforms, offering customers flexibility in accessing its products and services. The Daegu store marks IKEA Korea's expansion to eight stores, including one in Seoul, four in the metropolitan area, and three in regional cities such as Busan, Daegu, and Gwangju. Plans are underway for IKEA Korea to open its ninth store in Daejeon in November, located approximately 144 kilometers south of Seoul.

The company's previous opening of the Seoul store, IKEA Gangdong, in 2025 caters to local consumers' trend of researching products online before purchasing in physical stores. Among IKEA Korea's eight existing stores, five are blue-box stores located in Seoul, Gwangmyeong, Goyang, Giheung, and Busan. To boost customer attraction, IKEA Korea introduced next-day parcel delivery in April and expanded home delivery options to provide more flexible time slots and service choices.

IKEA Korea's sales for the fiscal year ending August 2025 increased by 2.2% compared to the previous year, reaching 639.3 billion won (approximately US$434 million). Online sales contributed 13% to the total revenue. The company aims to achieve 200 billion won in e-commerce sales this year, a significant increase from 50 billion won in 2019. CEO Puig anticipates that the 2026 fiscal year sales will surpass last year's performance, indicating a promising trajectory for IKEA Korea's growth.

Despite South Korea being the largest online home furnishing market globally, with 52% of home furnishing solutions sold online, the company acknowledges the importance of retail stores in entertaining customers. The unique Korean market demands both online shopping convenience and the immersive retail experience offered by blue-box stores.

IKEA Korea plans to maintain a balance between online and physical sales to cater to diverse customer preferences, as highlighted by Puig. Additionally, the company implemented price reductions for over 1,500 products last year, which contributed to its growth strategy.