IKEA, the world’s largest furniture seller, will open its first store in Mexico next year and plans to launch other stores around the country, the company said on Wednesday, as it expands in Latin America to counter growing competition in its core U.S. and European markets.
The Swedish chain known for its modern and inexpensive designs plans to open a store in eastern Mexico City in the fall of 2020 and also sell its products online, Malcolm Pruys, the country retail manager for IKEA Mexico, said at an event in the capital.
IKEA also plans to target a number of other cities of varying sizes throughout the country, he added in an interview. “We’re setting a reasonably aggressive expansion plan,” he said.
The first store will be medium-sized, offering 7,500 products and a restaurant able to seat more than 650 people, with a warehouse off-site for e-commerce.
IKEA’s traditional model has called for vast warehouses on city outskirts packed with goods. But the retailer has recently developed compact formats, allowing it to branch into smaller cities, Pruys said.
IKEA has 427 stores across 52 markets. Stores in Europe and the United States drive the majority of sales for Inter IKEA Group and its franchisees, but rival retailers, especially online, are increasingly vying for shoppers.
Late last year, IKEA announced plans to enter Latin America, including Chile, Colombia and Peru.
The plans to launch in Mexico began four years ago. On Wednesday, several IKEA executives met with Mexican President Andres Manuel Lopez Obrador, who was pleased by Ikea’s confidence in Mexico, Pruys said.
“There is great movement in Mexico around cleaning up corruption,” he said. “We think there’s a big opportunity for Mexico’s economy to continue to grow.”
IKEA is working on plans for a variety of payment options for online shopping, aiming to reach Mexico’s vast unbanked population, he added.
If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:
Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://www.americanindustriesgroup.com/jobs/
Mexico’s Nuevo León state, the country’s top nearshoring destination, is readying a strategy to guarantee sufficient energy supply for the estimated 165 investments announced by companies […]
The Hon Hai Technology Group, also known as Foxconn, announced a new strategic partnership with the Mexican state of Chihuahua. The electronics manufacturing giant and Mexico’s […]
Mexico’s top 10 nearshoring investments, planned or underway, involve seven international firms focusing mainly on the automobile industry and lithium batteries. At least five of the […]
Atlanta-founded law firm Fisher Phillips will establish three offices in Mexico with a team of lawyers from Deloitte, it said on Monday, citing “surging” demand for […]
Mexico’s industrial production beat expectations in May led by the construction sector, as the “nearshoring” trend boosts demand for infrastructure. Industrial output rose 1% from April, […]
Mexico is the top spot for expats in 2023. That’s according to a survey of more than 12,000 respondents across the globe by InterNations, which provides online services for […]