Ikea plans to expand, starting with trial Tasmania small-format store

The Swedish furniture giant IKEA plans to more than double its retail presence in Australia by opening small urban stores.

It is also selling products online for the first time since opening in Australia in 1975.

IKEA Australia's David Hood unveiled the strategy to boost store numbers from eight to around 22 over the next few years, the Australian Financial Review reported.

It included building another three or four 30,000 square metre mega-stores.

The small-format stores are currently being tested in markets across Europe and Tasmania, where there is a pickup capacity.

IKEA plans are accompanied by two new distribution centres which will increase the number of products able to be stocked in Australia from 1300 to around 9000.

Mr Hood, who is a 25-year IKEA veteran running the Australian business since 2008, said most customers shop at IKEA four or five times a year.

IKEA will open three stores this year – Marsden Park in Sydney's west opened last month, Canberra in November and a second Brisbane store in August.

David Hood envisages smaller stores along the east coast, including the NSW Central Coast and the Gold Coast.

"There are 22 locations that we feel the customers could meet IKEA in some way – what it will not be is what we see at Tempe [which is 37,000 square metres]," he told The AFR.