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IKEA's First Urban-Format U.S. Store Will Be In The Heart Of Manhattan

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IKEA's First Urban-Format U.S. Store Will Be In The Heart Of Manhattan
999 Third Ave.

IKEA is opening its first Manhattan location, the company announced Monday, in an attempt to adjust to the realities of retail’s shifting landscape.

The outpost, known as the IKEA Planning Studio, is expected to open in spring 2019 at 999 Third Ave., a mixed-use building owned by Zucker Organization. It is the first of this type of concept in the country, and IKEA plans to open 30 new stores in cities over the next three years.

The exact size of the store was not made clear in the release, and the Swedish furniture giant also plans to remodel its more traditionally designed store in Brooklyn's Red Hook neighborhood.

“We recognize that we are in a rapidly changing retail environment, and to be fit for long-term growth, IKEA is transforming in a way that lets us meet our customers where they are,” IKEA Retail U.S. Country Manager Lars Petersson said in a release. “New York City is the natural choice to open the first city center store — the most vibrant, dynamic city in the U.S., and the epicenter of retail, business and culture.”

The store, at 999 Third Ave. in Manhattan's Lenox Hill neighborhood, will allow shoppers to look at IKEA products and have them delivered to their home — delivery from most IKEA stores can cost $80 or more, counter to retail's prevailing trend of fast, next- or same-day delivery. The Planning Studio will focus on furniture for small, urban spaces.

Catering to millennial consumers, curating and shaping retail experiences and leveraging the e-commerce craze are all major issues for retailers across the country. Malls and department stores are all adapting. Target, for example, is opening a slew of small-concept stores in urban locations across the country. Walmart is more directly competing with Amazon with delivery and its $3B purchase of Jet.com.

Related Topics: IKEA, 999 Third Avenue, Retail NYC