Retail Merchandiser - July/August 2013 - (Page 80)

Real Estate IKEA What’s the IKEA? The idea of IKEA is to offer all of its products in each store, so finding locations that can meet the retailer’s size and space requirements can be challenging. S Joseph Roth, U.S. public affairs manager Conshohocken, Pa. 80 elf-help is not a way of saving labor in IKEA’s style of warehouse stores. The concept of customers helping themselves to their merchandise reflects the retailer’s southern Swedish roots of team effort in order to reduce the costs, self-reliance and reduction of unnecessary frills. The global home furnishings retailer founded by 87-year-old Ingvar Kamprad has united disparate cultures worldwide with one cleanly designed aesthetic for furniture. This aesthetic also is applied to the multitude of other accessories that the company produces for itself or under exclusive arrangements with other companies that it may own. The only brand sold by IKEA is IKEA. Expanding worldwide, IKEA has opened 38 stores in the United States. The thirty-ninth is scheduled to open in the summer of 2014 in Miami-Dade County, Fla., and the fortieth in fall 2014 in Merriam, Kan. Renowned for their awe-inspiring scale, the newest IKEA stores average from 350,000 to 450,000 square feet, although some of the older stores are smaller. IKEA has five distribution centers in the United States, several of which are up to 1.8 million square feet in size, U.S. Public Affairs Manager Joseph Roth reports. “Since we display and inventory everything onsite at a store, the distribution centers need to be large enough to ensure appropriate goods flow to the stores,” he says. “The full product offering is roughly about 10,000 items, and the goal is to have everything available for the customer to take home.” The goal is for each store to carry every one of those 10,000 items, Roth maintains. “That’s why the stores are so big,” he points out. “The distribution centers receive the goods from the suppliers – whether here in North America or from Asia or Europe – and then have regular rotations in which they are distributed from the distribution centers straight to the stores based on the combination of what the stores need and what they should be selling.” July/August 2013 Each store receives approximately seven truckloads of merchandise daily. “Every day after hours the stores are restocked, because only the first two shelves of the self-serve furniture area are customer-accessible,” Roth explains. “So the rest is up in the air or at a higher level of racking. In the interest of safety, we do not allow forklifts on the floor during business hours.” When locating a new store, IKEA seeks out trade areas that have a population base of 2 million people within 30 to 40 miles of a store location. “Unfortunately, there are some metro areas where there will never be an IKEA store,” Roth concedes. “Our stores are rather large, and we need a large population to support them.” Finding a prime retail location within those areas can be quite a challenge for a store with a large footprint. “In a perfect world, we prefer to build a store that is at grade and typically requires 20 to 30 acres of land,” Roth prescribes. “We purchase our land – we do not lease it – and we build our own buildings.” When locating a new store, IKEA seeks out trade areas that have a population base of 2 million people within 30 to 40 miles of a store location.

Table of Contents for the Digital Edition of Retail Merchandiser - July/August 2013

Retail Merchandiser - July/August 2013
Digital Messaging
How to Bring New Life to the Center Store
Fall Toy Preview 2013
WWWDMAGIC 2013 Fashion Preview
Hispanic Footwear
Firm Fashion Fixture
Macy’s Magic
Generating Buzz
Looking Sharp
On the Trend
Shoe Sensation
Victorinox Swiss Army Inc.
Hiller’s Market
Patrick James Inc.
Art Van Furniture
Fairway Market
Architec Housewares
Easy Rest Adjustable Sleep Systems
Burnstad’s Market
Shoe Carnival Inc.
Destination XL
Hibbett Sports
R.H. Ledbetter Properties
Goodwill of Central Arizona
Beyond the Rack LLC
Cymax Canada
Diamond Nexus
New & Notable

Retail Merchandiser - July/August 2013