Ikea Japan shuts two Tokyo flagship stores; failure to succeed in the city.

So, Ikea took a big risk opening new stores in the heart of Tokyo during a pandemic, and guess what? Their Harajuku branch launched in June 2020 and was off to a solid start. They even opened another location in Shinjuku by May 2021. But here’s the kicker: both branches are closing on February 8, just a few years in. That’s gotta sting.

Now, let's break it down. While the stores thrived early on, they just couldn’t maintain that momentum. Locations in dense urban areas like Harajuku and Shinjuku didn’t match the classic Ikea vibe. Smaller stores lack the charm of spacious setups that drew customers regularly. Plus, with the Shibuya location just a two-minute train ride away, shoppers had too many options. When your business model relies on being a destination and you’re one of three within seven minutes, Houston, we have a problem.

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