Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a account? Log In

Making Sense of IKEA

Ethan Chernofsky
September 3, 2019
Making Sense of IKEA

We ran a series of reports for our Q2 Retail Index including dedicated posts on the Grocery, Apparel, Food, and Home Improvement sectors. And it was while researching the last of the group, that we noticed a retailer with traits that differed dramatically from the rest of their category - IKEA. 

Compared to nine other top players in the space, IKEA saw a significantly higher percentage of weekend visits than any competitor. Nearly 50% of their visits in Q2 came on weekends, where the average of the other nine was below 40%. And the same approach led to a dramatically higher visit duration with IKEA visitors spending nearly 80 minutes on average in a store, while the average of the other nine was just above 40 minutes. That’s nearly double the amount of time spent in a location!

And the ramifications of this approach are enormous. So we dove into IKEA data to analyze the traits that set the brand apart and to understand what this means for their neighbors.

The Uniqueness of IKEA - Quality over Quantity

To put IKEA’s approach into context, we compared the company’s visits with Menards nationwide over the 12 month period from August 2018 through July 2019. For this period, Menards, one of the better brands in the sector when it comes to repeat visits, saw an average of 7.2 visits per visitor. IKEA, on the other hand, saw only 2.5 visits per visitor, a dramatically lower number. This places an added emphasis on maximizing each visit to drive conversions.

And the data indicates that IKEA does just that. Instead of focusing on repeat visits, IKEA provides a ‘destination’ shopping experience. The average visit duration over this period was 81 minutes, more than double the 40-minute duration that the average Menards visitor spends at a store. Imagining a customer willing to invest that much time without making a purchase is incredibly difficult and the ability to drive high intent customers is an enormous asset for IKEA.

The need to dedicate this amount of time also disproportionately brings visitors to IKEA on weekends, where they see 49.4% of visitors come on a Saturday or Sunday. Comparatively, Menards sees only 39.8% of their visitors on the weekend. This allows IKEA to optimize their staffing, operations and campaigns accordingly, knowing that their distance makes them the cause for a visit, and not just a stop on the way.

Why Does It Matter for IKEA and Menards?

The information is critical for IKEA in order to maximize the way they expand their retail footprint, optimize marketing and more. When you are a weekend destination that requires a lot of time for a visit, you must focus on optimizing your physical properties. IKEA has shown a tremendous mastery of this. The image below shows the True Trade Areas - places where visitors actually come from - for four different stores in Southern California. Shockingly, there is almost no overlap between the trade areas, meaning IKEA has been able to effectively determine how far a customer will travel for a store.

Returning to our comparison with Menards, the below image shows two locations in Michigan, and the difference is stark. The IKEA (blue) has visitors coming from an incredibly large trade area, while the Menards (red) sees a far more localized distribution. For Menards to expand across the country they would need far more properties to achieve the same reach that IKEA accomplishes with far less. Yet, on the flip side, they are given far more flexibility in the ways, times and channels they can use to reach their audience.

The point is made even more clear when analyzing the distances that visitors traveled. Nearly 82% of this Menards visits come from within 10 miles, while over 76% of this IKEA’s visitors come from beyond 10 miles. 

Why Does It Matter For Their Neighbors?

But this data doesn’t only matter for IKEA and Menards, it has a huge potential impact on the shopping centers that house them and any brand that wants to sit nearby. Because of the demands placed on visitors to come on a weekend or during a period when they have time to spare, IKEA visitors are more likely to shop or eat out before and after their visit. 26.0% of IKEA visitors nationwide continue shopping after a visit as opposed to 19.4% for Menards. 9.6% will go to a restaurant after, whereas 6.9% of Menards visitors will. These differences present unique opportunities and considerations for co-tenants. 

How should you arrange staffing? When should you create deals to boost downtime? All of this data can help co-tenants improve their numbers by taking advantage of the opportunties and disadvantages that come from having either of these brands as a neighbor.


And this is perhaps the most important point. IKEA isn’t better than Menards or vice versa, but they are definitely not the same. For each brand to drive success they need to understand and internalize the differences that set them apart and create a customer experience that supports it. From marketing to staffing to market planning, there are powerful insights based on this data to help increase revenue.

But critically, these insights are not limited to the brands themselves. Shopping center owners, nearby tenants and beyond can find ways to improve their performance and profit by adapting tactics to help leverage the strengths of neighbors. Cross promotions, well-targeted campaigns and deals, and beyond can all be developed in order to leverage a company’s wider context to drive value.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Free
Oops! Something went wrong while submitting the form.
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023 Office Index: April 2023 Recap Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update Office Index: March 2023 Recap
How Did Key Retail Categories Perform in Q1 2023?
Northeastern USA Grocery Dive
Movie Theaters Storylines for 2023
Ollie's Bargain Outlet: Discounters are Evolving
Leveraging Brick-and-Mortar Retail in 2023
America’s Evolving Work Patterns: A Deep-Dive into New York and Chicago Mall Index March 2023
Tuning Into Record Stores
Five Franchises To Watch in 2023
What’s Next For Domestic Tourism?
It’s Showtime! Movie Theaters in the Spotlight
5 Limited Time Offers (LTOs) Driving Restaurant Traffic
Department Store Deep-Dive: Belk
Regional Grocery Chains Staying Ahead of the Competition
Five Chains that Rightsized for Success
Unlocking the Potential of Offline Retail Media Networks
Dining Out With Darden
What’s in Store for Self-Storage?
Nike & lululemon Update: Strong Performance Amid Expansion Plans
Many Ways to Win: Midwest Grocery Deep Dive
Retail, Reinvented: The Rise of the Pop-Up Shop
Navigating a New Normal in Business Travel & Commutes Office Index: February 2023 Recap
Retail Categories Staying Strong in Volatile Environment
Ulta Beauty: Poised for Success into 2023 Mall Index February 2023: Reasons for Continued Optimism
Catching Up With DICK’s & Hibbett
The Miami-Dade Arena: An Advertising Slam Dunk
Car Washes Revving Up Visits
Tuesday Morning and Sunrises in Home Furnishing
Dining & Valentine’s Day Recap
2023: The Year of the Discount Store
Aldi’s Success Highlights Growing Demand for Value Groceries
5 Retail & Service Categories Holding onto Pandemic Gains in 2023
Visitor Insights from Super Bowl 2023
2023 First Look: Home Improvement Update
How Are Target, Walmart, and Wholesale Clubs Faring in 2023?
Department Store Deep-Dive: Nordstrom
Off-Price: Taking Off in Uncertain Times
Checking in On Middle-Class Hubs
Who Attends the Super Bowl? Office Index: January 2023 Recap
Focusing On Fitness: Q4 and January Recap Mall Index: January 2023 – Returning Mall Normalcy?
Location Intelligence Insights Into Concert Attendance
Winning Dining Strategies for 2023
In-N-Out Burger: What to Expect as the Brand Moves East
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Migration Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In’s Q4 2022 Quarterly Index Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023 Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications
New Year, New Food: 5 Dining Trends For 2023
This is Why Shop-in-Shops Are Everywhere
Super Saturday 2022 Recap
The San Francisco Shift
Grocery Year-End Update: Publix in the Spotlight