Daegu: IKEA Korea, the South Korean branch of Swedish furniture company IKEA, inaugurated its eighth store in Daegu, marking a significant step in its expansion strategy within the Korean market.

According to Yonhap News Agency, the new store is strategically situated inside Shinsegae Department Store near Dongdaegu Station, catering to customers in Daegu and the adjacent North Gyeongsang Province. Isabel Puig, the Chief Executive Officer, highlighted Daegu's importance, noting the high customer interest since her arrival in the country three years ago. She mentioned that around 200,000 people visited IKEA's pop-up store during its 10-month operation until July 2024.

IKEA Korea is diversifying shopping options for customers by integrating traditional stores, urban-format stores, and online platforms. The opening of the Daegu store increases IKEA Korea's presence to eight stores, with locations in Seoul, the metropolitan area, and regional cities like Busan, Daegu, and Gwangju. The company plans to launch its ninth store in Daejeon in November.

The first Seoul store, IKEA Gangdong, opened in 2025, reflecting a trend among consumers to research products online before purchasing in physical stores. Despite being inside a shopping mall, it is classified as a blue-box store due to its size and product range. Five of IKEA Korea's current stores are blue-box stores.

To attract more customers, IKEA Korea has introduced next-day parcel delivery and expanded home delivery options. Sales for the fiscal year ending August 2025 increased by 2.2 percent to 639.3 billion won, driven by its omnichannel strategy. Online sales now constitute 13 percent of total revenue, with a target to reach 200 billion won in e-commerce sales this year, a substantial increase from 50 billion won in 2019.

Puig expressed optimism for sales in the 2026 fiscal year, predicting double-digit growth in online sales. She emphasized South Korea's leading role in the online home furnishing market, where 52 percent of home furnishing solutions are sold online. Despite this, retail stores remain vital for providing an engaging shopping experience unique to Korea.

IKEA Korea plans to continue adding blue-box stores, recognizing their importance in offering customers a complete shopping experience. Puig also mentioned the company's investment in Korea, including price reductions on more than 1,500 products over the past four years.