IKEA plans to build reduced and compact shopping centers as it expands throughout Southeast Asia that greatly differ from the vast facilities consumers are used to.
A 28,000-square-foot prototype location is already up and running in Phuket, Thailand, which is nothing in comparison to the typical 200,000 to 450,000 square foot centers the brand builds. This move from the furniture retailer allows for facilities to be erected in the midst of crowded city streets.
Currently, consumers in the Philippines and Vietnam are buying IKEA's product from third party retailers as there's no nearby brick-and-mortar locations According to Retail News Asia, IKEA's Southeast Asia locations will heavily emphasize at-home deliveries so the brand can keep less inventory on-site.
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