IKEA: Smaller stores and five new locations by 2029

Housemarket, part of the Fourlis Group, is shifting towards smaller stores closer to consumers as it reshapes the IKEA network in Greece, Bulgaria and Cyprus. The plan envisages five new stores by 2029 and signals a different direction for the franchise network’s growth: entering new cities with stores smaller than its large-format outlets.

Focus on stores of 2,000–4,000 sq m

According to a report by The Total Business, Housemarket is now focusing on stores measuring between 2,000 and 4,000 square metres. These sizes are considered better suited to expansion into smaller cities and markets where developing large retail outlets is difficult.

The change therefore concerns not just store size, but also the geographical approach to expansion. Establishing a presence in more local markets supports the goal of bringing stores closer to consumers. Rather than relying exclusively on large premises for expansion, the plan puts smaller outlets at its heart.

The target of five new stores by 2029 covers the network across all three countries. It does not refer solely to Greece and should not be read as an announcement of five Greek openings. It is also a development plan with a defined timeframe, rather than a list of stores already operating.

This distinction is essential to understanding the news: the confirmed direction is to reshape the network, move towards smaller premises and expand into new cities.

The Greek market and IKEA’s 17.3% share

The next phase of expansion is being planned as Greece’s furniture and home furnishings market shows signs of slowing. Against this backdrop, Housemarket aims to increase its market share, linking network expansion to a stronger market presence.

In Greece, IKEA’s market share stands at 17.3%, up by 0.3 percentage points, according to the same report. This indicates a stronger market position, but does not in itself describe sales trends or store profitability.

The combination of a slowing market and an increase in market share is significant. A company’s performance relative to its competitors does not necessarily mirror overall demand. The 17.3% figure should therefore be assessed as a measure of relative market position, rather than a general indication of growth in consumer spending.

The new plan places consumer access to the network at the centre of this effort. It does not, however, establish in advance how the smaller outlets will perform commercially.

How IKEA’s franchise model works

For those interested in the Greek franchise market, this development is also noteworthy because of the structure of the partnership. IKEA is not owned by the Fourlis Group. Housemarket, a subsidiary of the group, operates IKEA stores in Greece, Cyprus and Bulgaria under a franchise agreement.

The brand, product range development and overall business concept sit within the international IKEA system. The franchisor is Inter IKEA Systems B.V. Distinguishing between the franchisor and the company operating the regional network makes clear who is responsible for each level of the business.

In this case, the restructuring concerns the network operated by Housemarket in these markets. It is neither an announcement of a transfer of brand ownership nor, in itself, an invitation for independent investors to open an IKEA store.

What it means for the franchise community

The news highlights the importance of tailoring a store’s floor area to the potential of each local market. The significance extends beyond the number of planned locations: it also lies in the choice of a store size that the company considers more suitable for smaller cities.

A smaller floor area does not, however, automatically mean lower overall investment risk or higher returns. Such conclusions require separate financial and operational data. Housemarket’s case primarily offers a concrete example of a network changing direction within an existing franchise agreement.

Practical takeaway: When assessing a franchise expansion, consider store size, the local market and the structure of the agreement together. The number of new stores is only part of the picture.