Latest news with #IsabelPuig
Korea Herald
11-04-2025
- Business
- Korea Herald
Ikea Korea launches first Seoul store, bolsters 'omnichannel' presence
Ikea Korea announced that it would open its first store in Seoul, Ikea Gangdong, on Thursday, while unveiling plans to ramp up investment to better meet the needs of Korean consumers. 'Koreans have a strong interest in home furnishing products, and the country is one of the most active markets for online purchases of our products,' said Isabel Puig, CEO and chief sustainability officer of Ikea Korea, at a preopening press event Friday. 'Next year, we plan to invest 30 million won in automation systems at our Gwangmyeong and Goyang locations, and will continue to invest in enhancing our operations across the country.' Ikea officially entered the Korean market in 2014 with the opening of its Gwangmyeong store. Currently, it operates five offline stores, an online mall and the Ikea app as part of its e-commerce platform. Last year, it recorded 626 billion won in revenue and 18.6 billion won in operating profit. The total number of annual visitors across online and offline channels reached some 58.27 million, according to Ikea Korea. The company invested 17 billion won in automation at its Giheung store to improve parcel handling last year, allowing for faster and more efficient delivery services. Such transformation of existing stores into fulfillment hubs reflects Ikea Korea's commitment to its "omnichannel" strategy. With around 52 percent of home furnishing products in Korea now being sold online, Ikea Korea sees strong demand for a seamless, cross-channel shopping experience. 'Ikea Gangdong was designed with Korean shoppers in mind — those who want to see and touch products in person, and then confirm or purchase them online, or vice versa,' Puig explained. The new store is located on the first and second floors of Gangdong IPark The River, a commercial and cultural complex within the Godeok Biz Valley. Departing from the traditional standalone blue container box format, IKEA Gangdong introduces a store model integrated within an urban mixed-use mall. The store showcases over 7,400 products in showrooms, with around 3,700 items available for direct in-store purchase. Drawing from onsite research that included in-home visits to local Gangdong-gu residents, the store features 44 curated room sets tailored to single-person households, couples and families. Ikea Gangdong will also house the brand's largest in-store dining spaces in Korea, with a 50-seat Swedish cafe and a 600-seat Swedish restaurant. 'Korea is a fast-paced society, and retail is even faster. It's important for our store to be located where people naturally gather, socialize, and have fun,' said Magnus Norberg, head of the Ikea Gangdong store. 'It's not just about shopping — it's about creating meaningful moments, like enjoying a coffee with friends. We aim to offer a 360-degree experience that reflects how people spend their time.' As part of its broader commitment to sustainability, Ikea Korea reported achieving 100 percent electric vehicle deliveries within Seoul and 73 percent nationwide. The Gangdong store operates on 30 percent renewable electricity, 8 percent of which are generated on-site. Additionally, 43 percent of the store's staff are local hires from Gangdong-gu. Menwhile, Ikea's latest opening comes amid intensifying competition in Korea's home furnishing retail market. Homegrown retail store Emart and Japanese brand Nitori are also entering the same Godeok Biz Valley complex. "Our distinctive Swedish design identity, extensive product range that are entirely designed in-house and affordable pricing will set us apart from other players in the market." the CEO said.
Korea Herald
17-03-2025
- Business
- Korea Herald
IKEA to open 1st outlet in Seoul, 5th in S. Korea
Swedish furniture giant IKEA said Monday it will open its first outlet in Seoul and fifth in South Korea next month amid efforts to boost its sales in Asia's fourth-largest economy. IKEA advanced to South Korea with its first outlet in Gwangmyeong, just south of Seoul, in 2014, and it currently operates four outlets in the country. The three others are also located outside of Seoul -- one in Goyang, just north of Seoul; one in Giheung, 32 kilometers south of Seoul; and one in the southeastern port city of Busan. The fifth outlet is located at the Gangdong IPARK THE RIVER complex cultural facility in eastern Seoul and is set to open on April 17, the company said in a press release. Its newest outlet here does not take the traditional blue box form. Instead, it is accessible on the first and second floors of the facility, it said. Blue box refers to IKEA stores, which look like big blue boxes. "As the first IKEA store in Seoul and the first store format, IKEA Gangdong will be the centerpiece of IKEA Korea's omnichannel strategy, bringing an inspiring IKEA home furnishing experience both online and offline closer to the city center," IKEA Korea Chief Executive Officer Isabel Puig said in the release. The Netherlands-based Ingka Group, the biggest IKEA franchisee, has 400 stores in 31 countries. The total number of IKEA stores, including Ingka's, around the world reaches 481 in 63 markets. Globally, Ingka Group's overall sales fell 5 percent to 39.6 billion euros (US$43 billion) in the 2024 fiscal year that ended in August from 41.7 billion euros a year ago. In the same fiscal year, however, IKEA Korea shifted to a net profit of 5.5 billion won ($3.7 million) from a net loss of 5.2 billion won a year ago. "The company invested 10.5 billion won to lower the prices of 1,200 items at its (Korean) outlets in the 2024 fiscal year to boost sales. It worked. And increased e-commerce deals also helped the bottom line," a company spokesperson said. Operating profit soared to 18.62 billion won from 2.59 billion won, while sales rose 4.2 percent to 625.8 billion won from 600.66 billion won over the cited period. (Yonhap)
