Logistics & Supply Chain Strategy Briefing

STREAMLINE: Why IKEA Chose a Downtown Mall Over a Warehouse Megastore

(May 20, 2025)

A Case Study in Omnichannel Strategy: IKEA’s New Urban Store in Gangdong, Seoul

The conventional image of IKEA—massive warehouse-style stores in suburban areas—has been disrupted. On May 17, IKEA opened its first-ever urban store in Seoul, located on the 1st and 2nd floors of the Gangdong I-Park The River Mall in the city’s eastern district.

The store is smaller, with only half of the displayed items available for immediate purchase. Most notably, the iconic self-serve warehouse zone has been dramatically scaled back.
Why such a bold shift?
The answer lies in two strategic goals: expanding customer touchpoints in urban areas and optimizing logistics for online fulfillment.


❶ Point of View | Why IKEA Abandoned the Warehouse Model—For Now

Until now, IKEA’s footprint in Korea consisted of large-format “blue box” stores in the suburbs—Gwangmyeong, Goyang, Giheung, and Dongbusan. But the new Gangdong location breaks this mold.

Instead of a massive standalone site, IKEA Gangdong is a smaller urban concept store integrated within a shopping mall.
The warehouse-style “self-serve” area is minimized, while customer experience zones like cafés and restaurants are significantly expanded.