IKEA Korea will open its largest urban-format store in South Korea next month at Shinsegae Department Store's Daegu branch, its third such location after stores at Lotte Department Store's Gwangju branch and Hyundai Premium Outlet's Songdo location. The move marks a shift from the suburban "blue box" warehouse model that established IKEA in South Korea toward smaller stores linked to online sales, consultations and pickup services. The company has tested urban demand through pop-up stores since 2024, with cumulative transactions reaching approximately 1.42 million by June this year and online sales in non-metropolitan areas rising roughly 30% year over year. Fiscal 2025 revenue rose 2.2% to 639.3 billion won, or approximately $462.0 million, but remained below the 2021 record of 687.2 billion won, or approximately $496.6 million. Operating profit fell 41.6% to 10.9 billion won, or approximately $7.9 million. IKEA operates five large-format stores and has no further openings planned, while market exit rumors, a withdrawn Pyeongtaek logistics-center plan and a government investigation into alleged pressure on employees returning from parental leave have added to the challenges. IKEA also said it would cut prices on 161 products by an average of 15%, while keeping prices unchanged on 8,110 of 9,104 products and raising prices on 754 items.