Nestore's blog

IKEA Place de la Madeleine a hit with Parisians

The first IKEA in the center of Paris

Opened in 2019, we visited the site just one day after its opening. So, let's take a step back four years and put it into context!

The main goal of this store? To meet the needs of Parisian customers who may not have the opportunity to access stores located on the outskirts of the capital. Indeed, with its 5,400 m² of sales area (compared to 20,000 m² for a traditional IKEA), this new Ikea store was the group's first establishment to benefit from a Parisian address within the city walls.

Ikea Madeleine's target? Parisians huddled in 26 m² of living space, for whom furnishing can quickly become a real headache. So what better way to understand their challenges than by knocking directly on their door?

Ikea Madeleine: a store designed through co-creation

Several months before the Madeleine store opened, IKEA created a co-creation platform . Through this platform, several Parisian families who were members of the store's loyalty program were able to participate in the design of this new space. They were able to share their ideas and desires.

"We didn't really have any questions, it was rather free and thanks to this platform we had more than 1,200 contributions from our Parisian customers , " explained Annie Bétreau, the director of this new store. From these exchanges, IKEA understood that they "wanted to have a different experience, for this store to be like an extension of their apartment." 5 areas were therefore designed like at home! Parisians were therefore able, for almost 4 years , to "stroll, be inspired but above all, in a close relationship, glean advice or even participate in workshops."

The power of customer experience at IKEA

But what are its special features? What's new? What can we find there? And what can we buy there?

Upon entering, customers can purchase items in self-service and view furniture on display. Right next door, the other space called “Social Gourmand” is there to satisfy your appetite!

As in all other IKEAs, the catering area is present and will accommodate a large number of people. (150 seats in a store in Paris is pretty good!) . You can eat at desks, a nice concept! But if you don't have time to sit down, you can take away! "This IKEA will offer a redesigned catering offer, around healthy products, made on site, such as salads," explained the director of the future store, who assures that the group's iconic products, such as salmon and meatballs, will be on the menu.

You can also visit the Swedish grocery store, where 120 typical Scandinavian products await you. No more traditional checkouts; you can order your main course, dessert, or anything else directly from the terminal!

On the first floor , you can express your personality through the layout with the “express your personality” space, do activities that we do at home with the “Share and play” space or even recharge your batteries with the “Detox and recharge” space! It is therefore no longer a “ customer journey ” that is imposed on us, but several distinct spaces dedicated to storage or even the kitchen. Here, customers can wander freely on the 2 levels between the 4 atmospheres dedicated to the rooms of the house.

At IKEA City, visitors can try their hand at being an interior designer! Using computers in a dedicated area, customers can design their own spaces with IKEA furniture to get an idea of what it might look like in their home. A fun concept, certainly, but I must say that it's not that easy! I therefore recommend making appointments with interior designers, either on site or online. (These appointments are certainly paid, but they are refunded if the customer completes the transaction. Not bad, right?)

Digital tools to complement a limited shelf offering

With a sales area in IKEA City four times smaller than in a traditional IKEA store, the brand is leveraging digital tools to make its entire offering available in-store. In total, 3,500 products are presented via screens at the point of sale, compared to only 1,500 products available in person. This strategic selection was made based on the consumer habits of the Parisian target audience (thanks to data!).

So, we understand that the priority for the brand is not so much that customers leave with their products under their arm, but that they order from the store, or later from their smartphone or computer, to then have them delivered to their home.

IKEA City, a concept to boost online sales?

As you will have understood, the Parisian concept of IKEA city is a tool primarily intended to boost its sales on the internet .

Beyond a strategy combining brick-and-mortar storefronts and e-commerce, IKEA aims to overtake its main competitors in the online sales market. While the Swedish retailer dominates the furniture market, notably ahead of Conforama and But, it is seriously lagging behind online. And for good reason: when it opened its first IKEA City in Paris in 2019, e-commerce represented only 5% of its sales, compared to 8% for Conforama and 12% for But.

In 2022, just three years after opening its Parisian concept, the growth in its e-commerce sales is undeniable. Online sales now represent 20% of its turnover, 15 points more than in 2019. So yes, COVID and changing habits have played a role. But we have to admit that IKEA is setting an example in this area and has even managed to outpace its competitor Conforama, whose e-commerce sales represented only 14% of its turnover in 2022.

A playground to offer new experiences

A smaller retail space , but more focused on customer experience ? Challenge met with the IKEA City concept!

IKEA's presence in the heart of cities offered the brand the opportunity to experiment with new services . Sustainable delivery , in-store events , local partnerships ... an overview of an innovative concept.

Let's start with the delivery service . IKEA is deeply committed to sustainable development and has partnered with French start-ups such as Olvo for bicycle delivery and Marcel , a ride-hailing service using electric vehicles . "The goal, by 2020, was to achieve zero emissions , thanks in particular to 100% electric delivery trucks ," explained Annie Bréteau, the store's director. The group was even considering using river transport from Gennevilliers .

In terms of in-store activities , an event space was specially designed to make this point of sale more lively and attractive . Thematic conferences and workshops were organized there regularly, in line with the different universes offered. These meetings were led by IKEA employees , but also by designers , associations , influencers and other "taskers" , around various themes. The first theme addressed was Feng Shui , an ancestral Chinese art aimed at harmonizing living spaces.

Over the weeks, visitors were able to practice yoga , cook without producing waste , create mood boards or even enjoy a massage . A rich and inspiring program that gave a whole new dimension to the in-store experience.

Finally, IKEA also focused on developing new partnerships . "The idea was to involve Parisian associations and create links between customers ," explained Annie Bréteau. This space also served as a showcase for artistic collaborations , such as the Förnyad collection, both fun and offbeat, designed by Sarah Andelman , co-founder of Colette .

With this project, IKEA had found a new lease of life , offering an enriched point-of-sale experience and appealing to a more urban target . While high technology and customer experience were at the heart of the concept, one question remained: what would the next developments be?

IKEA City, from Paris Madeleine to Place d'Italie

Four years after moving to the La Madeleine district, IKEA announced in April 2023 the relocation of its flagship store to the Place d'Italie shopping center.

A strategic move for IKEA

Let's be honest, this change of address isn't a coincidence. The decision follows the announcement of the acquisition of the Italie Deux shopping center by Ingka Centres, the property company of the Ingka group, parent company of most IKEA stores. In short, what better place to start a furniture store than in your own backyard?

But the rental advantage is far from being the only explanation for this move.

"Excellent accessibility"

For IKEA, moving to Italie 2 also means putting accessibility back at the heart of its location choices. With excellent accessibility by public transport and car, the shopping center will accommodate both urban and car-intensive customers. This wasn't the case for its customers in the heart of Paris.

"Logistics infrastructure"

There's no doubt about it: we're gradually returning to the basics of traditional IKEA. Equipped with delivery docks, the brand promises smoother operations and simplified logistics. And naturally, the availability of this infrastructure also brings new possibilities in terms of the products displayed in stores.

"A potential surface area of approximately 5,800m²"

While still far from the 20,000 m² footprint, this new IKEA City still has an additional 400 m² compared to the previous one. This space will allow the brand to offer a wider range of takeaway items without sacrificing new technologies to complement its offerings.

Further out but larger, does this new location represent a step backwards for the Swedish brand?

IKEA City: an evolving concept?

From pop-up stores to permanent outlets, IKEA has evolved its concept of city-center stores over the years. Faced with challenges related to accessibility and the size of these retail spaces, new technologies and additional services have been key. Today, IKEA City stores are a distillation of the brand's best practices in terms of customer experience and omnichannel.

While Parisians have been won over by the new point-of-sale shopping experience (selection of items via in-store tablets, collection of purchases later), many of them are disappointed by the move.

" I've gotten used to having IKEA nearby, and I can't live without it anymore. What a shame that the Swedish company is abandoning the center of Paris so quickly. " While some loyal customers will agree to travel to Italie 2, for others the choice is quickly made: " One thing is certain, I won't go to the south of Paris . Too far from home ."

Between the city center and the outskirts, this new store is a middle ground. It remains to be seen whether it will achieve the same success as the one at La Madeleine.