On the morning of the 11th, I visited the 'IKEA Gangdong' in Godeok-dong, Gangdong-gu, Seoul. The interior of the store, which has about a week until its official opening, was organized enough to welcome customers immediately. The warm light illuminated various types of furniture, including sofas and beds. Every time I turned my gaze, the high saturation yellow and blue symbolic of IKEA were prominently present throughout the store.
IKEA Korea plans to hold a media day on the 17th to mark the opening of the Gangdong store and revealed some of the spaces in the store on that day. Isabel Pucci, CEO of IKEA Korea, noted, "It has been 10 years since we entered Korea, starting with the Gwangmyeong store in 2014," and added, "The Gangdong store has particularly researched Korean living styles in depth to showcase suitable designs, increasing the arrangement of items that fit the Korean residential style."
The IKEA Gangdong store is the fifth store of IKEA Korea in the country and the first store in Seoul. It covers an area of 25,000 square meters (about 7,563 pyeong) and is located on the 1st and 2nd floors of 'Gangdong I-Park the River' in Godeok Business Valley, Gangdong-gu, Seoul. Until now, IKEA has opened stores in South Korea in the form of standalone large stores called 'blue boxes,' but the Gangdong store is considered an unusual attempt as it is located within a complex shopping mall.
The IKEA Gangdong store will display about 7,400 products suitable for Korea from over 9,000 types of furniture sold worldwide through showrooms and other means. More than 3,700 products can be purchased immediately in the store, and the rest can be delivered through the online mall.
One of the features of the Gangdong store is the creation of room sets based on the residential styles analyzed by directly visiting Korean homes. According to IKEA's annual Life at Home report, only 43% of Koreans reported feeling positively about their living conditions, which is the second-lowest level among the countries surveyed by IKEA. At the same time, 35% of Koreans listed "sustainable living" as the top priority for an ideal home, the highest figure among the surveyed countries.
The Gangdong store created 44 room sets considering various lifestyles, including single-person households, couples living together, and families with children. Among these, three room sets reflect the structure of 20 to 30 pyeong apartments and officetels commonly seen in Korea. Six room sets were created in collaboration with residents of Gangdong and nearby areas, as well as influencers.
Analysis suggests that IKEA Korea's decision to move the Gangdong store into a complex shopping mall, stepping away from large stores, is due to the poor performance experienced in recent years. In the 2021 fiscal year (September 2020 - August 2021), IKEA Korea reported a record high of 687.2 billion won in sales and 29.4 billion won in operating profit.
However, due to the impact of the COVID-19 pandemic and the global economic downturn, the company's performance declined in the 2022 fiscal year (sales of 622.3 billion won, operating profit of 21.8 billion won) and the 2023 fiscal year (sales of 600.7 billion won, operating profit of 2.5 billion won). Consequently, IKEA Korea canceled its plans to open stores in Gyeryong in 2022 and Daegu in 2023, halting its strategy of expanding large stores.
The IKEA Gangdong store has introduced a strategy to expand the omnichannel shopping experience (connection of online and offline). According to IKEA Korea, South Korea has the highest percentage of online purchases in the home furnishing sector, reaching 52%.
Pucci stated, "We identified that Korean consumers take an average of about two months to purchase a sofa," and added, "They conduct preliminary research through YouTube and the internet, view products in person offline, and ultimately purchase products online." She continued, "The IKEA Gangdong store will provide an opportunity for consumers in Seoul and the Gyeonggi area to visit the store and check products directly."
The decision to open a new store in the Gangdong area is also explained by the convenience of transportation. Magnus Norbury, manager of IKEA Korea Gangdong, said, "It is close to subway lines 5, such as Goddeok Station and Sangil-dong Station, providing good public transportation access. Additionally, there are three major roads nearby, including Olympic Boulevard, Gangbyeonbuk-ro, and the Gyeonggi 1st Circular Expressway, making it easy to visit from across Seoul and the metropolitan area, including Gangdong-gu."
IKEA Korea plans to continue investing in the Korean market. Pucci noted, "Last year, we invested 17 billion won in the Giheung store to implement a fulfillment system, and we plan to invest an additional 30 billion won in the Gwangmyeong and Goyang stores in the 2026 fiscal year (September 2025 - August 2026) to establish the same system."
The company also expressed confidence in competing with corporations in the same industry. Emart, a leading discount retailer in Korea, will also enter the complex shopping mall where IKEA is located.
Pucci emphasized, "IKEA has a long history and offers over 9,000 products. There are hardly any brands with such a diverse product range like ours," and added, "Competition will highlight the unique experiences that customers can only obtain at IKEA, making us stand out more."