What: IKEA and Lego are defying the decline of physical stores by investing in their brick-and-mortar presence while also prioritizing e-commerce.

Why it is important: Both companies believe that customers still value the experience of visiting a store and want to see and touch the products. Ikea has opened 60 stores in the past year, many of them in city centres rather than suburbs, aiming to attract customers for smaller purchases. Similarly, Lego has tripled the number of its stores under the leadership of its CEO, Niels Christiansen.

Both Ikea and Lego view stores as more than just places to sell products, but also as a means to connect with consumers and strengthen brand loyalty. Additionally, the retailers have found creative ways to leverage their existing stores, using them as fulfillment centers for online shopping.

Ikea and Lego bet big on the future of the store