Ikea’s exit from Malm is primarily due to the current economic climate, as the Swedish furniture retailer is unable to compete with the recent rise in online shopping. Ikea has been struggling to keep up with the competition, with same-store sales in Sweden dropping by 1.5% in 2016. Additionally, Ikea has been facing increased competition from home improvement stores such as Home Depot and Lowe’s, as well as German counterparts such as Möbel-Discount and Home24.
Ikea has also been struggling to keep up with the trend of customers preferring to buy furniture in smaller quantities, instead of purchasing individual pieces. In Sweden, Ikea has closed 47 stores since 2012, and plans to close an additional 23 this year.
