In mid-June 2025, IKEA made an abrupt move by shutting down two of its UK “Plan & Order Point” locations, Aintree in Liverpool and the Stockport branch in Merseyway Shopping Centre. These compact stores were designed specifically for planning kitchen and bedroom spaces, but they lacked services like product returns and Click & Collect. The closures highlight how customer preferences are evolving, and what they now expect from even the smallest retail spaces.

Learning from Customer Feedback

IKEA admitted that these closures were driven by lessons learned from customer feedback. Shoppers today want more than design consultations; they expect to pick up products, return items easily, and browse accessories on-site. The retailer has announced that future Plan & Order Points, set to launch in cities like Dundee, Hull, and York, will include these key services. Additionally, IKEA is gearing up to open a small-format store in Chester later this year, designed with these insights in mind.

A Tough UK Retail Climate

IKEA’s decision is also a reflection of the challenges plaguing the broader UK retail environment. Soaring energy prices, increased wages, and a steady rise in online shopping have taken a toll on brick-and-mortar stores. In 2024 alone, nearly 170,000 retail jobs were lost in the UK. Forecasts suggest that the number could exceed 200,000 in 2025, revealing just how difficult it has become to sustain physical retail operations.

Balancing Growth and Efficiency

Despite these closures, IKEA remains committed to expanding in both traditional and modern formats. It recently unveiled a massive three-floor flagship store on London’s Oxford Street and is moving ahead with plans to open more compact locations in targeted urban areas. The company’s strategy clearly involves a balance: large, experience-driven destination stores paired with nimble, localized outlets.

An Agile Business Model

The closure of the two UK locations wasn’t just a retreat, it was a recalibration. IKEA is using these test stores to understand what works, what doesn’t, and how to best serve urban customers. The upcoming locations will be better equipped to handle modern consumer expectations, offering not just planning consultations but also the convenience of Click & Collect, accessory browsing, and easy returns.

Staying Relevant in a Changing Market

IKEA’s approach stands out in a retail era marked by transformation and uncertainty. While many companies are downsizing in response to rising digital shopping trends, IKEA is choosing to experiment, adapt, and refine. In 2025, the brand plans to open eight new small-format store, including a flagship in Santa Monica, as part of its broader commitment to convenience, accessibility, and sustainable growth.

Key Takeaways

• IKEA closed two UK “Plan & Order Point” stores due to missing key services like returns and product pickup.
  
  
• Customer feedback revealed a demand for greater accessibility and convenience.
  
  
• The company is pivoting, using lessons learned to enhance future store formats.
  
  
• Amid retail sector pressures, IKEA is balancing large destination stores with smarter, localized concepts.