Ikea plans to expand to dozen new markets coming years

New stores, online growth help IKEA fend off rivals; sales rise 5%

Ikea finally plans to open a store in Estonia

The company will in the coming years open stores in Chile, Colombia and Peru through a new Ikea franchisee called Falabella as part of its first foray into South America, Inter Ikea said.

It said on Wednesday it was also looking at entering Mexico, Estonia, Ukraine, Puerto Rico, Oman, Luxembourg, Macau and the Philippines in the coming years.

Ikea aims to be present in 49 cities by 2030 and its India footprint will include its typical large-format "blue box" stores (like the ones in Hyderabad, Mumbai and Bengaluru), smaller formats that it plans to experiment with, and e-commerce. In India, IKEA now has more than 55+ suppliers with 45,000 direct employees and 400,000 people in the extended supply chain.

Inter IKEA CEO Torbjorn Loof told Reuters online sales at the brand jumped 31 per cent to account for 5 per cent of total turnover, in line with the year before.

"We're exploring new store formats in city centres - all with the aim to improve the meeting with our customers both physically and digitally", said Jesper Brodin, CEO of Ikea's Ingka Group, which operates Ikea stores in the US, Europe, China and other worldwide markets.

The store, besides offering a wide range of home furnishing solutions, will also have a 1,000 seater restaurant serving Swedish and Indian delicacies.

Ikea is not listed and as a result it is not obligated to publish its net profit or other financial details.

Ikea's India chief executive Peter Betzel told Mint in June, about three months after he took over the reins from Juvencio Maeztu, that the country will be one of the top markets for the company. The company now has online stores in 35 markets after its operations in Belgium, Romania and Malaysia introduced e-commerce.

The company also said Karnataka is a priority market and that it will invest over Rs2,000 crore in the state in the long term.

However, the company expected high number of online orders in coming days, he added. "It will be a faster and bigger expansion than when we've entered new markets before". The 500,000 sq. ft. store, planned to open in summer 2020 is connected to the Nagasandra Metro Station, the company said in a statement. That means new Ikea franchisees should be able to "reach bigger volume faster with lower costs", Loof said.

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