IKEA Opening New Smaller Format Store in San Francisco

ClownLoach
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by ClownLoach »

storewanderer wrote: February 27th, 2024, 11:17 pm I've read this new San Francisco Ikea does not offer free parking or even validated parking with a purchase. There is a $20 parking fee at least on weekends.

What is odd is the parking garage is attached to the building and Ikea owns the building. So why charge customers who purchase for parking?

https://www.ikea.com/us/en/newsroom/cor ... ubbeb60430
Here's a lovely British scandal rag article. Sounds like this store will meet the same fate as the WFM nearby that didn't make it a year.

https://www.dailymail.co.uk/news/articl ... crime.html
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by storewanderer »

ClownLoach wrote: February 27th, 2024, 11:47 pm
storewanderer wrote: February 27th, 2024, 11:17 pm I've read this new San Francisco Ikea does not offer free parking or even validated parking with a purchase. There is a $20 parking fee at least on weekends.

What is odd is the parking garage is attached to the building and Ikea owns the building. So why charge customers who purchase for parking?

https://www.ikea.com/us/en/newsroom/cor ... ubbeb60430
Here's a lovely British scandal rag article. Sounds like this store will meet the same fate as the WFM nearby that didn't make it a year.

https://www.dailymail.co.uk/news/articl ... crime.html
I am thinking since they own the building maybe they will keep it open? Since it is empty and due to its model maybe it isn't of much interest for the shoplifters?

I also read they do not even sell large items there, you have to go in and pay and then just get delivery. You may as well order online. I can't tell if the $19 delivery fee is per item or per basket. That actually seems like a pretty good deal to me... especially if the purchase involves stairs... would think this impacts profits though.

The parking situation I think they would need to offer free parking with $50 purchase or something... since the garage is in the building they own... come on... cannot believe a $20 parking fee in an Ikea-owned garage- to go browse there but this is San Francisco and parking is very expensive. Third party garage is another issue and recall a third party garage and no free parking is part of what killed the Safeway in Downtown San Jose.

San Francisco specific issues aside they seem to be making some serious mistakes here.

I don't think a store that does not have the ready to assemble product "ready to take out of the store and install immediately" and has a limited SKU mix does not meet the typical customer expectation for the Ikea brand. Maybe this would have been accepted back in 2019 when the city was booming but this is no longer the case, fewer people are around, and you cannot get away with an inferior/higher priced (thanks parking fee) offer anymore.
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by buckguy »

The point of the store is to serve people who aren't going to the suburban locations. It's not meant to serve carbound suburbanites and it makes no sense to approach it that way. It's basically an IKEA version of a retail model that's been a round for a long time. Lot's of furniture stores have had urban locations w/o parking. Before changes in the mattress business put futons out of business, there were a lot of these places which also sold assemble it yourself book cases, desks, beds, etc. with futons as a big traffic driver. The conventional Aarhaus furniture chain started out like this. Door Store, Z, and other chains prospered often for decades selling in urban locations for first apartments and the like. Most of what people bought at these stores would be delivered. IKEA has had stores like this in foreign countries for decades, so it's not new to them, either.

SF has hundreds of thousands of people and many don't have cars or cars that are practical for hauling stuff. The alternative is to rent a vehicle for a day and go to a suburban location, which will cost far more than a downtown parking garage.

Once you get past the comments about the parking, people who've actually been to store have liked it.
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by ClownLoach »

buckguy wrote: February 28th, 2024, 8:56 am The point of the store is to serve people who aren't going to the suburban locations. It's not meant to serve carbound suburbanites and it makes no sense to approach it that way. It's basically an IKEA version of a retail model that's been a round for a long time. Lot's of furniture stores have had urban locations w/o parking. Before changes in the mattress business put futons out of business, there were a lot of these places which also sold assemble it yourself book cases, desks, beds, etc. with futons as a big traffic driver. The conventional Aarhaus furniture chain started out like this. Door Store, Z, and other chains prospered often for decades selling in urban locations for first apartments and the like. Most of what people bought at these stores would be delivered. IKEA has had stores like this in foreign countries for decades, so it's not new to them, either.

SF has hundreds of thousands of people and many don't have cars or cars that are practical for hauling stuff. The alternative is to rent a vehicle for a day and go to a suburban location, which will cost far more than a downtown parking garage.

Once you get past the comments about the parking, people who've actually been to store have liked it.
I think the difference is that Ikea has set an expectation for what their store is, and these little showrooms they're opening aren't it. Kinda the same problem as the tiny drugstore size Target stores that have the same sign, you walk in and immediately discover it isn't what you thought it was. Although there are many reviews from customers who liked the store I would ask how many of them actually bought furniture...

Ikea operated for decades in the US without these showrooms, by putting big stores in suburban areas outside of major cities. They made a lot of money this way. They have been trying these smaller format showrooms for a while, sometimes even in big box centers (Long Beach, CA for example in a former Aaron Brothers picture framing store). Cars or no cars hasn't really been a factor as much as just trying to fill gaps between their big stores. This SF location is the largest "small" store they've opened in the US and certainly the highest profile.

I think there is a branding issue with all of these small Ikea stores... Maybe they need to call them something like "Ikea Design Center" or something else to indicate it is not going to be the standard Ikea experience. I believe they do actually have a different name, but the sign only says Ikea so it still will bring in people and set them up for disappointment. This particular store is larger than the other mini buildings and looks full size on the outside so it is even more misleading than others where it's obvious the size of the building couldn't possibly contain the endless choices of a standard Ikea.

Ikea has also been able to do smaller stores with off-site pickup (San Diego is a example). The store is still a good size and has the full showroom but they have a separate facility a short distance away that select oversized items are picked up from. They give you a map and send you there. I am pretty sure everything the SD store keeps at the off-site doesn't fit in a regular car either, and they use it as a delivery warehouse. They could have done this for SF as well, find an area closeby where they could get a warehouse for storing couches, beds, whatever.

As far as the car vs no car goes, the average Ikea purchase doesn't fit in a car. You see a lot of rented moving trucks or cargo vans. I did buy a Ikea couch a couple of years ago and had to go rent a cargo van, it was relatively cheap and I made great use of it for one day by planning other purchases of large bulky items. But I'm in the land of cars and have the same situation as these folks from SF without a car, still needed to rent a different vehicle or pay for delivery. Since I needed to haul other large items I elected to rent a van. One thing I can say is that Ikea may be charging too much for parking (I agree that they should validate with an acceptable minimum purchase to prevent their lot from being used all day by other office workers in the area who might just get a hot dog and save a bundle on parking). But then they are not offering $19 flat rate delivery elsewhere either... It was going to be about $100 due to the distance between the store and my house for the couch delivery.
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by Romr123 »

This is similar to the Ikea which opened up in Toronto a couple years ago---Toronto's ringed with "normal" Ikea stores, but this is smack downtown (right on Yonge/Wellesley). They have set up neighbourhood (sic) pickup depots for semi-bulky stuff, it appeared. It was a perfectly legitimate Ikea experience (we were traveling there from Detroit, yet picked up some things) with the cafeteria, food store and takeaway linens/kitchen/plants/etc and samples for delivery of everything bulky. Right above the TTC station.

Maneuvering a rental truck/van around the city isn't for the faint-hearted. Notwithstanding the San Francisco city situation, this is a perfectly legit implementation of Ikea in an urban area (which, don't forget, has been replicated dozens of times in every large city WORLDWIDE). They know what they're getting into.
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by storewanderer »

I understand all of the points especially that they've already done this type of format in various other cities in the world, but at the end of the day the customer is the boss. I see the San Francisco Ikea getting low reviews on Google compared to other Ikea locations and also not seeing a lot of reviews come through which alludes to low traffic.

And if the only thing really pulling the customer reviews down is the parking fee they have got to do something where they waive that with a minimum purchase. The own the entire building... it almost feels like they're trying to subsidize the $19 delivery which is obviously discounted, by throwing this parking fee in.
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by ClownLoach »

storewanderer wrote: February 29th, 2024, 12:13 am I understand all of the points especially that they've already done this type of format in various other cities in the world, but at the end of the day the customer is the boss. I see the San Francisco Ikea getting low reviews on Google compared to other Ikea locations and also not seeing a lot of reviews come through which alludes to low traffic.

And if the only thing really pulling the customer reviews down is the parking fee they have got to do something where they waive that with a minimum purchase. The own the entire building... it almost feels like they're trying to subsidize the $19 delivery which is obviously discounted, by throwing this parking fee in.
And we tend to be less forgiving, especially Californians, than the rest of the world. Lest we forget other European companies that do their thing all over the world but come here and fall flat (ahem, Tesco). Heck, shopping malls are still a thing all over the world but we can't close them fast enough here. Glad Ikea has been able to do small format elsewhere, but that doesn't make this store any less of a flop. Toronto is a completely different animal; if you're familiar with Canadian housing you'll understand why this is not comparable.
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by storewanderer »

ClownLoach wrote: February 29th, 2024, 12:35 am
storewanderer wrote: February 29th, 2024, 12:13 am I understand all of the points especially that they've already done this type of format in various other cities in the world, but at the end of the day the customer is the boss. I see the San Francisco Ikea getting low reviews on Google compared to other Ikea locations and also not seeing a lot of reviews come through which alludes to low traffic.

And if the only thing really pulling the customer reviews down is the parking fee they have got to do something where they waive that with a minimum purchase. The own the entire building... it almost feels like they're trying to subsidize the $19 delivery which is obviously discounted, by throwing this parking fee in.
And we tend to be less forgiving, especially Californians, than the rest of the world. Lest we forget other European companies that do their thing all over the world but come here and fall flat (ahem, Tesco). Heck, shopping malls are still a thing all over the world but we can't close them fast enough here. Glad Ikea has been able to do small format elsewhere, but that doesn't make this store any less of a flop. Toronto is a completely different animal; if you're familiar with Canadian housing you'll understand why this is not comparable.
I am also wondering if the current issues with San Francisco are hurting Ikea. For instance when you have a vibrant city full of life with people coming/going, people moving in/out, etc., it seems like "going to Ikea" will be a popular activity. When you have a city like San Francisco that has so many problems, and I suspect a lot more people trying to "get out" than "move in," I am thinking the mood just is not really right for "going to Ikea" to be a popular activity at this time.

Maybe if/when the city figures out how to make people want to go to the city again and move into it again in greater numbers than people are leaving, this will work. All this talk of trying to add more housing in Union Square for instance should create strong demand for Ikea there.

People in San Francisco who are lucky enough to live away from Union Square area and not having the deal with/interact with Union Square area are very defensive about what has happened and in complete denial about the dire situation. These people also, potential Ikea customers, will avoid going there because having to go to Union Square or near it like this Ikea is, is a difficult experience for them to cope with because they have an image of what they think San Francisco is/means to them, in their head, and in their nice clean isolated neighborhood that image still is true, but if they go to Union Square that image isn't true and it is right in their face (or in their nose, or on their shoes); denialism is easy if you just avoid a place that is as bad as Union Square has become.

I am seeing these deniers on the Macys closing threads. "Nobody goes there anyway" - - what??? It had 400 employees. What do you mean nobody goes there? "Dying chain" --- yeah that is true to a point but this is a flagship store. "I've lived here for 10 years and only went there twice and never bought anything" - - - okay... but a lot of other people, thousands every day, did go there and buy things (we will forget the hundreds who also showed up to shoplift).
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by Alpha8472 »

There is an Ikea just across the bridge from San Francisco in Emeryville, California with a huge free parking garage. There is no way I am driving into San Francisco to shop at the little IKEA.

The IKEA in San Francisco is mostly for people who live in San Francisco. These are rich tech workers, upper middle class people who live in million dollar homes, millionaires who live in million dollar condos, etc. The rich will shop at the little IKEA and take an Uber or limo. The people who don't want to pay for parking will drive the extra 15 minutes to Emeryville.

The IKEA in Emeryville is overflowing with customers. The San Francisco IKEA is doing its job at reducing the wall to wall crowds at the Emeryville store. This will in turn lead to more customers since many people avoided Emeryville since there were so many crowds.

Emeryville will always appeal to those with cars, and San Francisco will appeal to those who don't care about parking.
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Re: IKEA Opening New Smaller Format Store in San Francisco

Post by storewanderer »

I'm looking at photos of this store on Google Maps, Yelp, etc. and after grand opening (late August/early September) the photos of the store in recent months look like a ghost town without customers or employees. The only photos that show other customers after the grand opening seems to be the food service operation. I guess the people who took the photos must have waited for all the other customers to get out of the way...? Never seen an Ikea that is so empty of customers.
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