Ikea promotes small-store concept

Business General Ikea promotes small-store concept PUBLISHED : 9 Nov 2026 at 05:03 NEWSPAPER SECTION: Business WRITER: Kuakul Mornkum Listen Small Medium Large Share Facebook Reddit Copy Link Ikea Thailand expects its small-store concept to help the brand expand into untapped areas, paving the way for further growth. The company also plans to relocate the existing store in Phuket and introduce a larger store by 2029. Leonie Hoskin, retail business manager of Ikea Thailand and Vietnam, said large stores are costly to build and take time to develop. The company sees advantages in the smaller store concept as it allows Ikea to establish a modest footprint in new areas with the potential to expand into larger stores in the future. Ikea operates three small stores in Thailand: one in Chiang Mai covering 700 square metres, another in Khon Kaen at 800 sq m, and one in Phuket at 2,000 sq m. A medium-sized Sukhumvit branch in Bangkok spans 12,000 sq m, while the flagship stores at Megabangna in Samut Prakan and Bang Yai in Nonthaburi each have space of 25,000 sq m. Ms Hoskin said smaller stores present challenges as they typically lack warehouses, meaning they rely on logistics and fulfilment services, which can increase operational costs, making careful management of the fulfilment network essential. The growth of online shopping means for furniture retailers, large parcels limit logistics provider options and items are vulnerable to damage during delivery. To manage costs, Ikea plans to introduce a new shipping model with Thailand Post, using collection points to offer customers a more affordable pick-up option. E-commerce accounts for 26-30% of sales and the company expects further growth, she said. Some customers shop across both online and physical channels, preferring to see a product colour or model in person before making an online purchase. Physical stores, including smaller branches, help meet this need. Stores also remain important places for customers to plan their rooms and find inspiration, said Ms Hoskin. EXPANSION PLAN Ikea Thailand is considering relocating its Phuket branch to a larger store. The company has operated in Phuket for around 10 years. "We are looking to relocate the Phuket branch into a space of 10,000 to 12,000 sq m," she said. The plan has not been finalised, but a tentative opening target is around 2029, according to Ms Hoskin. The company also wants to open a new store within a year or two, though no details were provided. Ikea's land in Rangsit could be developed into a third Bangkok store or serve as a nationwide fulfilment centre, but any such development is likely years away, she said. KEYWORDS Ikea thailand Retail strategy Small-store concept Furniture logistics E-commerce growth Phuket store expansion Thailand retail market COMMENT (1)