Malls have seen better days in the United States, but Ikea is betting it has a way to lure people back.
The home goods giant is reportedly actively looking to buy and develop a number of new malls in the US (and other countries), which have both strong existing tenants and the potential to develop them further, according to a report in The Wall Street Journal.
Ingka Group, which operates the majority of IKEA stores worldwide, is overseeing the initiative, expanding its existing catalog to 38 shopping centers in 15 countries. Malls typically have an Ikea store as a focal point, along with co-working spaces, children’s play areas and a Nordic-themed food court.
In the United States, the company currently operates only one shopping center, located in San Francisco. (A Toronto location is the only other in North America.) While some parts, like the Nordic food court, aren’t open yet, traffic to that mall has already increased, the company says.
One shopping center in London, however, has seen traffic double over the past year and seen an increase in interest from other businesses.
Ikea stores in malls are significantly smaller than department stores found in the suburbs. That compact design was originally made to house shops in urban centers, where buying a huge plot of land is less affordable.
Ikea attracted attention late last year when it announced plans to spend $1.1 billion on price cuts next year.
“People have thin wallets, but they still have needs, dreams and frustrations,” said Juvencio Maeztu, deputy CEO and chief financial officer of Ingka Fortune at the moment. “That’s why Ikea has become a destination for those who want to maximize the value of their money. Ikea was made for the crisis, so to speak.”