The Economics of Ikea Store Layout

The economics of Ikea, a look at the innovative business practices that have transformed modern life. - [Sarah] When you step into an Ikea, you immediately sort of are put into this maze like path of different rooms. - [Narrator] Ikea's store layout is a fixed path design which means there's a designated road that all customers must follow that guides you through the store in one direction. - [Sarah] It's not a grab a carton of milk and get out kind of store, it's the opposite of that. It's very much set up to spend a day, think about rooms you know, dream about what you really want your bedroom to look like. - [Narrator] The floor plan of most Ikea stores resembles a maze that curves about every 50 feet to keep customers curious about what comes next. Since an average Ikea store is around 300,000 square feet or five American football fields, that means a lot of walking. - An Ikea is to some frustratingly winding but really it's laid out as an experience to get you to buy more. (drill buzzing) - [Narrator] Ikea is famous for putting its customers to work. Unlike most furniture retailers that sell products preassembled, many of Ikea's pieces have to be built by their customers. But why. As many couples and their therapists will know building your own Ikea cabinet can be challenging. - The big idea behind the Ikea effect is consumers are more attached to have more positive feelings towards objects or things that we've put effort into.