IKEA to Open Tiny Store in North Austin’s the Domain

IKEA, known for its massive stores, is taking a different approach with a location at the Domain in North Austin.

The Scandinavian home furnishing retailer plans to open a store this summer at 3306 Esperanza Crossing, spanning 5,000 square feet, significantly smaller than a typical IKEA store, the Austin Business Journal reported.

It’s IKEA’s second Austin-area location. The other is a 306,000-square-foot store in the north suburb of Round Rock. The smaller concept, called a “plan and order point,” will serve as a pick-up location and studio where employees assist customers, especially in kitchen and office needs.

IKEA inked a five-year lease at 3306 Esperanza, which formerly housed custom automotive outfitter Twisted.

“IKEA is on a journey in the U.S. to become more accessible, convenient and affordable for the many,” IKEA’s Rob Parsons told the outlet.

Last year, the company revealed a three-year $2.2 billion investment to open stores and bolster delivery options in the United States.

The Domain location is about the size of an Apple store. To bridge the gap for customers who live far from the Round Rock location, the store will have parking spots for picking up online orders. The Domain store is expected to employ eight to 15 people.

IKEA was drawn to the Domain because it’s a high-profile retail hub and far enough from other IKEA locations.

The company’s decision to invest heavily in e-commerce and more accessible stores could stem from an altered retail landscape that was accelerated by the pandemic.

In Texas, a dearth of available retail space has prompted more ground-up retail developments and acquisitions of smaller storefronts, which are better suited for today’s market given the rise of online shopping. However, rents for retail spaces have skyrocketed amid low inventory.

—Quinn Donoghue