Ikea has set out plans to open 20 small format stores across Europe and North America over the next six months, as it looks to reach more customers in smaller cities and suburban locations.

The furniture retailer said the expansion is part of its strategy to become more accessible, affordable and sustainable by targeting areas where it does not currently have a presence.

The new compact stores will focus on everyday essentials, with more than 2,000 home furnishing products and accessories available in store, alongside planning services and a limited food offer. Customers will be able to access the full Ikea range via pick up and delivery options.

In France, Ikea will open its first 2,000 m² compact store in Limoges by the summer, with additional locations planned in other parts of the country. Coimbra will become the first city in Portugal to host the new format, in a space of more than 4,000 m², while Poland is set to gain another store in the city of Białystok by the end of the year.

Ikea said the smaller stores are designed to be more cost efficient and can open significantly faster than its traditional or metropolitan formats, while still supporting the wider fulfilment network.

The rollout forms part of Ingka Group’s €5 billion, three year investment programme to open new locations and upgrade existing outlets across most of its 32 markets. After the end of its 2026 financial year, the company will review the performance of the compact format before deciding on further expansion.

Juvencio Maeztu, chief executive of Ikea’s parent company Ingka Group, said that the physical store remains at the centre of the business’s omnichannel model and is a key part of how orders are fulfilled.

He added that the new smaller stores are intended to complement Ikea’s traditional sites by bringing the brand closer to where people live, while optimising store space, advancing digital capabilities and improving services to respond more quickly to changing customer needs.

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