Swedish furniture giant Ikea plans to invest US$326 million in South Korea over the next three years to increase its market share in the country. 

The investment will include “new formats” stores, such as pop-up stores and compact Ikea stores ranging in size from 5000 to 10,000sqm, according to Bloomberg.

The plan also includes the opening of Ikea’s iconic Blue Box store in Seoul. 

The retailer currently operates four locations in South Korea, inclduing three in Seoul and one in the southern port city of Busan. It is planning to open a fifth location in Seoul next year. 

Ikea South Korea’s performance declined at the end of FY23, reversing the prior year’s increase. The business also reported its first fiscal-year loss after experiencing a sales decline for the first time since entering the market.