The iconic brand used the store as an experiment, and UK boss Javier Quinones was quoted as saying that as it had proved popular the new format was likely to branch out to other cities around the UK. Unlike the much larger stores situated on the outskirts of towns and cities, the more homely look allows people to wander in off the high street for a browse and ask questions about décor.
The Swedish furniture chain reported further expansion in the UK after another year of record sales, and the company announced last week that UK revenues had risen by 5.9% to £1.96bn. The period of growth has also seen 2 of the larger format stores open during the year in Exeter and Sheffield, which brings the total UK store count to 21.
The retailer also has a significant online presence with no less than 199.3m visits to the IKEA website which is an increase of 13.4% and has meant enhanced sales figures for the company, and which shows IKEA's diverse operations on all fronts of the retail market.
The new smaller style stores which have been marketed as 'Planning Studios' are in response to a growing global trend of more and more people living in cities and using public transport or walking, as opposed to using cars. The smaller format will also be initiated as a trial in other cities worldwide including Shanghai, New York and Riyadh. Javier Quinones illustrated IKEA's responsive and adaptable mode of operation by stating that the company were responding to shifts in consumer demands and shopping trends.
At present there are no further details of exactly where the other smaller stores will open in the UK but Quinones mentioned that the intention was that the Tottenham Court Road shop would signal the first of many others. Despite the innovative moves made by IKEA in response to changing trends, the retail sector is undergoing tough times. In anticipation of potential Brexit changes, IKEA is already undertaking a number of contingency plans in order to implement a range of measures depending on the outcome, and to ensure the brand keeps growing and evolving.
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The neglected area around Nottingham train station may be undergoing a complete regeneration if recent plans submitted to Nottingham City Council are approved.
