Connect with us

Hi, what are you looking for?

News

World’s biggest Ikea opens in Philippines as part of global push

Ikea opened its biggest store in the world in the Philippines, with the new 730,000 square foot facility in Manila a cornerstone of the home-furnishings giant’s expansion plans in Asia.

Thursday’s opening was feted with an event held at the store’s cafeteria attended by Philippine trade secretary Ramon Lopez and foreign minister Teodoro Locsin, where Ikea’s cult-favorite Swedish meatballs were served to some attendees. They were accompanied for the big day by a special Philippine twist — adobo sauce.

Ikea is sticking to COVID-19 protocols after the store’s opening was delayed amid the pandemic, with an online booking system that’s full for the next two weeks, according to store manager Georg Platzer. Customers have to wear masks and observe distancing.

The spread houses a two-level 270,000 square foot store, dining area and showroom; warehouses; an e-commerce facility; and a call center. It’s on property leased out by SM Prime Holdings Inc.’s Mall of Asia.

Its opening comes as Ikea has expanded its e-commerce presence — which proved timely during the pandemic — with online orders now accounting for 26% of its global sales. The company, which has more than 460 physical stores in about 60 markets, is planning to add nearly 60 more locations in the current financial year. And it’s not just looking toward Asia: It will take its first step into South America this spring, opening a branch in Santiago, Chile.

Platzer said the Philippines had “been the right spot on our map for the longest time.”

“It was always a plan to come to the Philippines,” he said. “It’s a very good growing economy, growing middle class and domestic environment that’s good for us as a home furnishing retailer. I think it’s about time to open it, finally.”

Household spending fueled the Philippine economy’s recovery last quarter, with consumption expected to grow further in the fourth quarter as virus curbs are eased in time for the holidays. However, output isn’t expected to return to pre-pandemic level until the latter half of 2022.

The Manila store was initially scheduled to open in 2020, but faced delays due to COVID-induced movement restrictions and the disruption of construction material supplies. It’s part of a move to expand in Asia, with the brand recently unveiling its second store in India.

The Philippine debut comes despite Ikea forecasting a more difficult year ahead in 2022, due to logistics logjams and price spikes of raw materials brought about by the pandemic.

Local government officials and employees during the ribbon cutting ceremony.

Despite the supply crunch and challenges keeping stores and warehouses stocked, the company managed to report record sales last year. Chief Executive Officer Jon Abrahamsson Ring of Inter Ikea, the brand’s worldwide franchiser, told Bloomberg in October that his vision was to make Ikea “even more affordable” by shifting a larger share of new products to a lower price segment. — Bloomberg

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

BORONGAN City is holding the Surf in the City Festival from Nov. 26-Dec. 3 as it hosts the 3rd leg of this year’s national...

News

PHILIPPINE STAR/ MICHAEL VARCAS THE DEPARTMENT of Transportation (DoTr) on Thursday said it will consider new suppliers for public transport reloadable cards amid a...

News

LIONEL Messi of Argentina — REUTERS/JOEL MARKLUND DOHA — Lionel Messi missed a first-half penalty but Argentina’s Alexis Mac Allister and Julian Alvarez scored in a...

News

CREAMLINE Cool Smashers — PVL Games Tuesday(PhilSports Arena)2:30 p.m. — Chery Tiggo vs Creamline5:30 p.m. — Cignal vs Petro Gazz DENIED of a historic...

News

JUSTIN BROWNLEE — PBA MEDIA BARANGAY Ginebra resident import Justin Brownlee is excitedly counting the days until he can finally put on that Gilas...

News

KACEY dela Rosa (28) and Jhazmin Joson (15) — UAAP MEDIA AFTER an impressive campaign in UAAP Season 85 women’s basketball, Ateneo de Manila...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.