Ikea prepares € 5.8 billion for real estate



Ikea plans to invest EUR 5.8 billion over the next three years in developing shops in city centers and surrounding areas. Planned investments are coming in the context of the transformation of the industry to online sales.

Ikea Ingka Centeres, a real estate developer, currently owns 9.5 billion euros of real estate, but plans to increase this share by more than half.

An investment of EUR 3 billion will be aimed at building new centers in mixed-use cities – shops and meeting venues.

More expensive raw materials have reduced IKEA's profits

More expensive raw materials have reduced IKEA's profits

The Swedish home chain is facing a number of challenges in its transformation

Gerard Gröner, CEO of Ingka Centres, says a study suggests that consumer behavior leads to a "completely new way of thinking about shopping centers", which includes "integration of meeting point shops" and "blue wall opening [на магазините]so they are part of the center, not a separate building. "

Ikea has long indicated that it has been reoriented from its recent strategy for huge stores and warehouses on the outskirts of the city to small shops in the centers. Now, the company is also trying to increase its online sales.

But Groner points out that "if you have the right place, physical objects will always work."

It is unclear where Ikea will first focus on a new mixed use plan, but the director lists 30 "mega-cities" in the US, Europe and Asia.

IKEA opened its first small store in Eastern Europe

IKEA opened its first small store in Eastern Europe

The site is located in a Polish shopping mall and will be open on October 23rd


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