TOKYO (Reuters) - IKEA plans to open its first store in central Tokyo in 2020 and has chosen a neighborhood that draws young shoppers and tourists, in a departure from its usual suburban locations.
The 2,500 square meter 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