Ikea Closing Upper East Side Store, Company Says (2024)

Business & Tech

After just two years, Ikea will close its small "planning studio" on Third Avenue due to low foot traffic—but another location is planned.

Posted Tue, Dec 7, 2021 at 1:02 pm ET

The Swedish furniture giant opened up shop in April 2019 on Third Avenue, just above East 59th Street. (Though some may consider the area Midtown East, Ikea refers to it as the Upper East Side, and it is indeed just north of the neighborhood's southern border.)

Unlike Ikea's traditional warehouselike stores, this smaller space consisted of pre-furnished, compact rooms that plausibly resembled New York City apartments — giving shoppers the chance to see items in person before ordering them online.

But the store saw lower-than-expected foot traffic despite its high rent, prompting Ikea to reevaluate it, the company said in a news release Tuesday. But Ikea says its presence in the borough will continue, vowing to open another small-format store somewhere else in Manhattan.

"We remain committed to the New York City area and look forward to securing new home for our planning studio," said Linda Santing, Area Vice President for IKEA U.S., in a statement.

The Third Avenue store was the very first of 30 small planning studios that Ikea planned to rolled out across the country. Ikea's only other New York City locations are larger department stores in Red Hook, Brooklyn and Rego Park, Queens.

Starting Dec. 18, Ikea will stop offering appointments at the East Side shop. All existing appointments will be transferred to other locations in the tri-state area, the company said.

Related coverage:

• PHOTOS: Check Out Manhattan's First IKEA Store
• IKEA To Open First Manhattan Store, Company Says