What: IKEA will host Decathlon in its Croydon store as part of a new strategy to rent space to third-party retailers and attract more shoppers.

Why it is important: The partnership demonstrates how established brands are rethinking store formats and in-store experiences to remain competitive in a shifting retail landscape.

IKEA’s decision to rent space to Decathlon within its Croydon store marks a significant evolution in its approach to physical retail, as the company seeks to boost footfall and better monetise its expansive store network. This initiative is part of a broader strategy to adapt to changing consumer behaviours and economic pressures, moving beyond the traditional “blue-box” model to embrace collaborative, multi-brand environments. By welcoming Decathlon—a leading sports retailer—into its UK location, IKEA is not only diversifying its in-store offering but also creating new reasons for customers to visit and engage with its products. This shift is complemented by IKEA’s ongoing investments in smaller urban stores, digital services, and price adjustments to appeal to value-driven shoppers. The partnership with Decathlon, alongside similar collaborations with other retailers, signals a willingness to innovate and experiment with store formats, ensuring IKEA remains relevant and competitive as retail dynamics continue to evolve.

IADS Notes: IKEA’s partnership with Decathlon reflects a broader trend of strategic collaborations and experiential retail, as seen in its in-store shop launches with Best Buy in the U.S. (Chainstore Age CSA, November 2025; Retail Dive, August 2025). Decathlon’s move toward compact, urban formats (Fashion United, August 2025) and IKEA’s investment in urban flagships like Oxford Street (Financial Times, May 2025) underscore the importance of proximity and convenience. The closure of larger stores in China in favour of smaller, digitally integrated formats (Fashion Network, January 2026) further highlights the need for established brands to rethink store formats and in-store experiences to stay competitive.

IKEA to host Decathlon as it opens space to other retailers