Local Thinking - Our Blog | We Are Acuity

Why IKEA's small format is a big opportunity.

Written by Peter Cronin | 10-Jul-2025 07:00:00

I found myself in IKEA Hammersmith on Tuesday.

 

Hungry and in an unfamiliar area, it caught my eye – an opportunity for a good-value, wholesome lunch from a trusted brand. I walked out with a full stomach, a re-engagement with the brand and its wares, and a reminder of just how powerful smart retail format innovation can be.

 

Of course the high street has had a rough ride but there’s a real resurgence happening. And IKEA is one of the many brands showing us exactly how it’s done.

 

We’re all familiar with the iconic big blue box on the edge of town. But IKEA’s new UK store formats turn that model on its head – and they’re being bold about it.

 

These smaller, urban-focused stores are built around convenience, curation, and community. Think: around 5,000 products, with roughly 3,000 available to take home on the day. The rest? Just a few clicks away via in-store ordering or click-and-collect.

 

Add in planning and design services, a modern deli, quick-service food options, and that ever-reliable meatball magic – and suddenly, IKEA becomes not just a place to shop, but a destination that fits neatly into city life.

 

It’s not just a shop. It’s a strategy.

 

And it’s not a one-off.

 

IKEA is rolling out this format across the UK. You’ve probably heard about the Oxford Circus flagship, but they’re also opening in places like Harlow, Chester and Norwich – locations that blend strategic reach with local need.

 

It’s a clear signal to the market: you don’t need an out-of-town warehouse to build relevance or drive revenue. You need to meet customers where they are – physically and emotionally.

 

Here’s the real point: big brands can succeed on the high street.

 

But it takes:

 

  • The courage to rethink format

  • A sharp focus on evolving customer behaviour

  • And a commitment to local relevance

 

It’s exactly what IKEA is doing. And it should be a wake-up call for national and global brands still on the fence about town centres.

 

Spoiler alert: the opportunity’s there. But you’ve got to be willing to show up differently.

 

Local isn’t less. It’s your next big win.

 

In 2025, high streets are crying out for new anchors – not just more of the same, but brands that bring real value to the everyday.

 

That’s why I’m such a supporter of initiatives like Laura Harris’s High Street Positives Community. We’re not nostalgic – we're future-focused. Rebuilding local vitality by backing bold ideas.

 

So here’s my challenge to brand and format teams, franchise leaders and property partners:

 

  • Could you reimagine your format for urban life?
  • Could your next winning store be one you never considered?
  • Could you be the next anchor your local high street needs?

 

Because if IKEA can rewire a global model for local success – what’s stopping you?

If your brand is looking to do something genuinely different, get in touch. We Are Acuity have over 25 years experience in driving local retail for independent and multi-location brands , you can learn more about the services we offer by clicking here.

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