IKEA launches smaller format store in Sydney

IKEA is the furniture giant that offers everything from meatballs to mattresses under one roof.

But the company has now taken on new territory with the launch of some smaller format stores in Brisbane, Melbourne and Sydney.

This marks the retail conglomerates first foray into creating a more personalised experience for shoppers.

A Current Affair got an exclusive first look at the ‘Home Planning studio’ which promises a completely new experience for customers - watch above for the full segment.

Customers will be gifted the chance to sit down for one-on-one consultations with an IKEA representative where they can make plans for their home.

The two-hour session costs $99 and the goods are delivered directly to your home. But the best part is that someone will assemble it for you.

Jan Gardberg, CEO of Ikea Australia took A Current Affair on an exclusive tour of the studio which is slated to open later this week at Sydney’s Warringah mall.   

"Today I'm really happy to show you a new small format that we're integrating into shopping centres. LET'S HAVE A LOOK. This is a sneak peek, exclusively for you!" he said.

Retail expert Jo Munro believes that the store has tapped into a major gap in the market.

“I think they're accommodating what customers are demanding. I think it's a really clever move on their part” Retail expert Jo Munro tells ACA.

“I think the big warehouse stores still have a place in our shopping, we love to go through that treasure hunt shop and get some meatballs at the end.

“However we also want the convenience and there's a lot of players in that homewares space now that have affordable lovely design home wares, and so I think IKEA is meeting the demand of what the customers want which is really savvy retailing.”

IKEA isn't the first retailer to downsize. Six months ago, Woolworths rolled out smaller metro stores. And Coles recently began trialling a gourmet mini mart.

The Sydney store will be an opportunity to gain consumer feedback, with plans to roll out more stores nationally.

Watch above for the full A Current Affair segment.