TOKYO (Reuters) – IKEA plans to open its first store in central Tokyo in 2020 and has chosen a neighbourhood that draws young shoppers and tourists, in a departure from its usual suburban locations.
The 2,500 square metre shop will open in the spring of 2020 in Tokyo’s Harajyuku district, which is known as a mecca for youth fashion and also attracts tourists, IKEA Japan said on Thursday in a statement on its website.
After decades of rapid growth, the world’s biggest furniture brand is battling to adapt to the rise of online rivals such as Amazon <AMZN.O> and made.com, while also trying to maintain its hallmark affordability amid rising raw material and other costs.
Inter IKEA, the owner of the IKEA furniture brand, reported a drop in annual underlying profit on Monday, hit by higher wood and metal prices.
(Reporting by Stanley White; Editing by Alexander Smith)