IKEA to Host Decathlon in Croydon Store in Major Retail Partnership Trial
Ingka Group, the primary global franchisee of IKEA, has unveiled plans for a significant retail collaboration, with sports retailer Decathlon set to open a store within IKEA's Croydon location this spring. This initiative represents a pilot project aimed at integrating third-party businesses into IKEA's traditional "blue-box" stores to attract more shoppers and monetise existing space.
Strategic Move to Boost Footfall and Sales
Javier Quinones, Ingka Group's commercial manager, explained that the company is testing whether renting space to complementary brands can increase store visits and enhance customer engagement. "We believe complementary offers can encourage more people to visit our stores and engage with the products in new ways," he stated. This move comes as IKEA seeks to accelerate growth, following a 1.3 per cent increase in global footfall last year, despite reporting its lowest annual sales since 2021.
The Decathlon store will be a standalone unit spanning 1,188 square metres within the 25,000 square metre IKEA store in Croydon, south London. It will feature a dedicated customer entrance, allowing shoppers to access Decathlon's range of sports equipment—from tents and bicycles to running shoes—without entering the main IKEA area. IKEA will rent out the space to privately owned Decathlon, marking the first time a major international brand has been incorporated into a traditional IKEA blue-box store.
Broader Revamp and Expansion Efforts
This partnership is part of a broader strategy by IKEA to adapt to evolving shopping habits. Over the past decade, the budget furniture giant has revamped its formats, developing smaller inner-city outlets and showrooms while investing in digital services. Recently, IKEA has also cut prices across a range of products in an effort to appeal to value-driven, cash-strapped consumers.
Ingka Group is investing more than 5 billion euros (approximately $5.90 billion) during the 2024-2026 period to open new locations and improve existing stores. The trial with Decathlon is not isolated; IKEA is also revamping its Klagenfurt location in Austria, where home and garden specialist Thomas Philipps will open a store. Quinones noted that for this pilot, tenants were selected based on broad appeal and a strong commitment to affordability and quality.
While smaller collaborations have occurred previously—such as Nordic electronics retailer Kjell & Company opening in two Swedish IKEA stores last autumn—the Decathlon deal signifies a more ambitious step. IKEA is exploring similar opportunities in additional countries across Europe and North America, indicating a potential shift in its retail model to include more third-party brands in the future.
