A new era of the ‘flagship’ store

IKEA’s bold decision to open a new flagship store on London’s busiest high street, rather than its usual out of town locations, could herald the start of a new era for flagship stores.

When the Swedish furniture giant announced in 2021 that it would be taking over Topshop’s iconic Oxford Street store, the reaction was mixed to say the least. When it was then announced it would become IKEA’s flagship store, even more confusion followed.

After all, without the vast amounts of parking seen at most IKEA stores, how on earth could customers navigate the hordes of shoppers on Europe’s busiest shopping street to bundle their two-metre-long Billy Bookcase on to the tube?

Photo by Johen Redman on Unsplash

Since opening its doors in May, IKEA has proved the naysayers wrong. The store flips the traditional idea of a flagship on its head and instead prioritises creative inspiration, events and its hospitality offering. Despite including favourites such as its market hall and Swedish restaurant, the main spaces feel more like a showroom, showcasing the different ways that customers can utilise IKEA products in different parts of their home.

IKEA isn’t the only store shaking up Oxford Street. In the space next door, SpaceNK, who we have worked with for more than ten years, are set to open their brand-new flagship on 8^th August. Described as being ‘easily mistaken for a candy store’, the flagship will be a playground of new technology, including interactive displays and ‘expertise pods’. It follows a huge boom in the health and beauty industry, with consumer spending up by 7.3% year-on-year in August 2024.

TFG London has also recently opened a new flagship in Liverpool which features a luxury styling suite and a champagne bar, while Mama’s & Papa’s is set to open a flagship at the Trafford Centre featuring ‘innovative point-of-sale features, interactive product experiences and adaptable displays’.

Advances in store technology offer the perfect opportunity to create a unique flagship. From frictionless payments and self-checkouts to kiosks and digital displays, technology is the vital ingredient to driving footfall and making the flagships of the future not just a store, but a destination.

Committing to a large store can feel risky to retailers, but with innovation, creativity and the right technology to attract customers, flagships can still thrive.