Largest Ikea store to open in Philippines in 2020
MANILA, NNA – Ikea will open its first store in the Philippines in 2020, which will be its world’s largest, the Swedish furniture retailer said Tuesday.
Ikea South East Asia is teaming up with Philippine retail giant SM Prime Holdings Inc. to build a 65,000-square-meter store at the SM Mall of Asia Complex, one of the biggest malls in the country.
The world’s largest furniture retailer said the building will be as large as 150 basketball courts and is nearly double the size of a typical Ikea big blue-box. The store will also come with a warehouse, an e-commerce facility and an integrated call center.
The franchise-based retailer is making an initial investment of around 7 billion pesos ($133 million) and plans to hire 500 employees.
The store will carry 9,000 products with “prices lower than the competition.”
Ikea targets to attract around 6 million households in an economy mainly driven by strong consumption.
On choosing to enter the Philippine market, Georg Platzer, market development manager of Ikea Philippines, cited the growing middle class and young population of the country with an average age of 24.
Asked if there any plans to open more outlets in other areas of the Philippines, SM chief operating officer Steven Tan told reporters, “Let’s now focused first on our first store.”
Ikea has three outlets in Malaysia and two each in Thailand and Singapore. It opened its first store in India in August and plans to expand to Vietnam.
Ikea has nine stores in Japan and will open its first downtown store in the country in Tokyo’s Harajuku fashion district in 2020.
The company has over 422 outlets in more than 50 countries. It posted retail sales of 38.8 billion euros in the year to Aug. 31, according to its website.