New Store Opening on the 17th After Five Years
First Entry into an Urban Complex Facility
Omnichannel Hub Connecting Online and Offline
Home to Korea's Largest 'Swedish Restaurant'
IKEA's new store, 'IKEA Gangdong,' the first in Seoul and the first new store in five years, will open on the 17th. This marks the first case of IKEA entering an urban complex shopping mall, moving away from the standalone large store format known as the 'blue box.' IKEA plans to make Gangdong a key hub in its omnichannel strategy connecting online and offline channels. The company is accelerating its Korean market penetration by simultaneously investing in automated logistics systems and price reductions.
Isabel Puchi, CEO and Chief Sustainability Officer of IKEA Korea, stated at a media day held on the 11th at IKEA Gangdong in Gangdong-gu, Seoul, "IKEA is continuously expanding the introduction of automated systems to provide faster and more efficient service to customers," adding, "Following Giheung, we are applying related systems to Gwangmyeong and Goyang stores as well, and plan to invest a total of 30 billion KRW by 2026 to maximize logistics efficiency."
Last year, IKEA proactively introduced an automated system at the Giheung store with an investment of about 17 billion KRW. CEO Isabel explained, "Since then, customers have been able to receive products more quickly across online and offline channels," emphasizing, "Innovation in customer experience based on an omnichannel approach is IKEA's core strategy."
At the media day held on the 11th at IKEA Gangdong in Gangdong-gu, Seoul, Magnus Norberg, store manager of IKEA Gangdong, and Isabel Puchi, CEO of IKEA Korea, are answering reporters' questions from the left. Photo by Lee Sung-min
Gangdong is a space for experimenting with IKEA's 'new store format.' Unlike the existing large stores located on the outskirts, it is situated within an accessible urban complex shopping mall, expanding touchpoints with consumers. CEO Isabel highlighted, "Korea is one of the markets worldwide where home furnishing is most frequently purchased online," and added, "52% of IKEA products are sold online. Gangdong is a strategic store reflecting these consumer characteristics."
In particular, IKEA has been steadily pursuing a price reduction strategy based on its unique philosophy of 'Democratic Design' (design, function, quality, sustainability, and low price). Last year, IKEA invested 11 million euros (approximately 18.1 billion KRW) to reduce the prices of about 1,200 products by an average of 15%, and in February this year, it lowered prices on about 170 products with an investment of 2 billion KRW. CEO Isabel stated, "We want more customers to experience IKEA products regardless of their budget or income level."
This strategy is also tangible throughout the store. The Gangdong showroom featured realistic budget proposals with phrases like "A dream bedroom at this price." In addition to themed showrooms such as bedrooms and living rooms, customized spaces reflecting the actual lifestyles of Gangdong residents were prepared. Among the approximately 7,400 products displayed at Gangdong, about 3,700 can be purchased on-site immediately.
Taking advantage of its location within a shopping mall, the store design encourages interaction among customers. Inside Gangdong, the largest Swedish caf? among IKEA stores in Korea has been established, along with a Swedish restaurant with 600 seats. Exclusive Gangdong menus such as Pita Bread Meatballs, Ciabatta Sandwiches, and Protein Bagels are introduced. The 'Hej Food Order' system, which allows ordering and payment simply by scanning a QR code, has been introduced for the first time in a domestic store.
CEO Isabel said, "Since entering Korea, IKEA has visited thousands of households to study Korean lifestyles," and added, "We offer over 9,000 products reflecting local consumer needs from the design stage. Gangdong will be a key store leading the expansion of the Korean home furnishing market."
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