Ikea to open first urban store in trendy Tokyo district

Ikea plans to open its first store in central Tokyo in 2020 and has chosen a neighbourhood that draws young shoppers and tourists, in a departure from its usual suburban locations.

The 2,500-square-metre shop will open in the spring of 2020 in Tokyo's Harajuku district, which is known as a mecca for youth fashion and also attracts tourists, Ikea Japan said on Thursday in a statement on its website.

After decades of rapid growth, the world's biggest furniture brand is battling to adapt to the rise of online rivals such as Amazon and made.com, while also trying to maintain its hallmark affordability amid rising raw material and other costs.

Inter Ikea, the owner of the Ikea furniture brand, reported a drop in annual underlying profit on Monday, hit by higher wood and metal prices.