IKEA Turns To Mixed-Use Developments As Cities Continue To Grow
The world's largest furniture retailer is shifting gears, planning to open several IKEA locations as part of larger developments in response to growing urban centers.
The Swedish retailer is investing in urban mixed-use developments that include hotels, homes and offices to incorpate new stores as the trend towards greater real estate concentration continues, the Wall Street Journal reports. IKEA CEO Peter Agnefjäll says the new strategy comes from the simple reality that in 2050 experts forecast 70% of the world’s population will live in cities.
And the firm isn’t wasting any time getting started—IKEA is already investing in a Copenhagen development that will include retail stores, a hotel, and residential and office space. At present IKEA owns 66 shopping centers and retail parks in more than a dozen countries. [WSJ]