With footfall under pressure and giant stores to fill, the world’s dominant IKEA franchise operator is betting that complementary brands under the same roof can pull more shoppers through its doors.
Ingka Group, the franchise operator behind most of the world’s IKEA stores, is renting out floor space to third-party retailers in an effort to increase store visits and extract more value from its large-format real estate.
The latest pilot was confirmed on February 24: a standalone Decathlon unit will open inside the IKEA store in Croydon, south London, this spring. The Decathlon space will cover 1,188 square metres within a 25,000-square-metre store and will have its own customer entrance. It marks the first time a major global brand has been brought into one of IKEA’s so-called blue-box stores in the UK
Weak sales force IKEA to rethink how it uses store space
The decision comes as Ingka Group faces pressure on revenue. Last year the company recorded its weakest annual sales since 2021. Global footfall rose just 1.3% over the same period – a figure Ingka’s Commercial Manager, Javier Quiñones, acknowledged the company wants to improve.
“We believe complementary offers can encourage more people to visit our stores and engage with the products in new ways,” Quiñones told Reuters. Ingka said it selected tenants based on broad appeal and a commitment to affordability and quality.
Pilots underway across europe
The Croydon test is not an isolated move. Ingka Group has already launched a similar initiative in Sweden, where Kjell & Company, a Nordic consumer electronics retailer, opened concessions inside IKEA stores in Stockholm and Kalmar in late 2025. That arrangement runs for an initial 18-month evaluation period.
In Austria, Ingka is investing €11 million in its largest-ever refurbishment of the Klagenfurt store since it opened 17 years ago. When the renovation completes in fall 2026, around 2,600 square meters will be carved out for third-party retailers, including Thomas Philipps, a discount home and garden specialist. New family activity zones and additional home furnishing inspiration spaces are also planned. Quiñones said Ingka is exploring similar arrangements in additional European and North American markets.
Funding the rollout
Ingka Group has set aside more than €5 billion for the three fiscal years from 2024 to 2026 to open new stores and refurbish existing ones across its 32 markets. The third-party retail trials fall within that broader capital programme.
