What: Ikea’s mall business is stable and was not durably affected by the pandemic.

Why it is important: With the strategy of acquiring smaller spaces located in city centres, to create mini-malls, this part of Ikea’s activity becomes a direct threat to department stores across the planet.

Ikea’s mall business company, Ingka Centres, which owns 47 malls across Europe, Russia and China, reports that while footfall remains more or less stable globally at +1% vs. LY (with discrepancies between regions as Europe fell 13%), its tenants’ sales increased +16% to €6,6 bn. Occupancy rate remains stable at 94%, with large scale tenants such as Zara.

Last year, footfall decreased globally by -16% due to lockdowns and restrictions across the globe. The company is now pursuing a similar strategy to mother company Ikea, by looking for smaller locations acquisitions located in city centres, as exemplified by the recent acquisition of the former Top Shop location in London, or plans to open in Toronto and San Francisco in 2022.

Tenants' sales at IKEA's shopping malls grow 16%