Ikea finally plans to open a store in Estonia

Marco Green
October 12, 2018

More recently, it has canned what would have been its second-largest store in Cuerden, near Preston.

Swedish furniture retailer Ikea plans to invest close to Rs1,000 crore in its first store in Bengaluru.

Inter Ikea, which owns the Ikea brand and concept, announced its expansion plans as it revealed that sales at its franchise-holder stores had risen by 4.5 per cent in the year to the...

"This is part of the transformation of Ikea", said Javier Quiñones, Ikea's United Kingdom and Ireland country retail manager.

Barbara Martin Coppola, chief technology officer at IKEA Group, the owner of most IKEA stores, said tests underway ranged from connecting staff with customers via video to artificial intelligence tools to help people furnish their homes. Its economic development agency invited Ikea scouts to visit the city, but the response was reported to be lukewarm. "We know 50% of people do not have a auto today which makes the accessibility of some of our units not extremely easy". The investment is simply not worth it. That is, if Ikea has a strong interest in entering the New Zealand market, they may not do so with their traditional mega stores but through alternative touch points.

Ikea is not listed and as a result it is not obligated to publish its net profit or other financial details. "We will contribute positively to the State's development by creating 800-1,000 direct jobs and engage another 1,500 indirectly in services", said Peter Betzel, CEO, IKEA India.

Presently, the Ikea has two stores in the Baltics - in Vilnius, the capital of Lithuania, and in Riga, the capital of Latvia.

Ingka Group said in a separate statement that its full-year sales rose to €34.8 billion from €34.1 billion a year earlier. In its fiscal year 2019, which runs through August, a total of 15 retail locations are planned. The store was expected to attract more than 7 million visitors per year, he said.

"It's fantastic to see human interaction through technology when the consumer might need help or advice on where to place furniture", she told Reuters in an interview at a new IKEA city-centre store in Madrid dedicated to living room furniture. The company now has online stores in 35 markets after its operations in Belgium, Romania and Malaysia introduced e-commerce.

However, the company expected high number of online orders in coming days, he added. Now, we realise that India presents a much bigger opportunity for which ₹10,500 crore is inadequate.

"Ikea has seen continued growth despite a challenging and changing retail environment", Loof said in a statement. Its first store is planned to open in Santiago in Chile in late 2020 and locations in Lima in Peru and Bogota in Columbia will then likely follow, he said. That means new Ikea franchisees should be able to "reach bigger volume faster with lower costs", Loof said.

Other reports by Click Lancashire

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