Ikea plans to open first Mexico store in 2020

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.

We are always pleased to facilitate the establishment of international companies in Mexico (manufacturing in Mexico).
Source: https://www.reuters.com
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:

US toll-free: +1 (877) 698 3905

CAN toll-free: +1 (844) 422 4922

start@americanindustriesgroup.com
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/




Related posts

June 24, 2022
Mexico import participation to the US
Mexico reduces gap with China in import participation to the U.S.
Mexico reduced in April the gap with China in its share of total imports of products to the United States, from 14.2% and 15.3%, respectively, the […]
June 24, 2022
Mexico renewable energy
Mexico signs renewable energy deals with US firms
The agreements would generate 1,854 megawatts (MW) as the government scrambles to combat climate change. Mexico is home to some of the largest automobile manufacturing plants […]
May 19, 2022
Aerospace industry Mexico
They highlight Querétaro’s position as “aerospace city of the future”
During his participation in the Mexico Aerospace Forum 2022 , Marco Antonio Del Prete Tercero , head of the Secretariat for Sustainable Development (Sedesu), described Querétaro […]
May 19, 2022
Automotive industry Mexico
Mexico rises to fourth place in the world as a producer of auto parts
Mexico managed to position itself as the fourth world producer of auto parts, surpassing the figures achieved by Germany in this subsector last year. At the […]
April 28, 2022
Aerospace Industry in Queretaro
Queretaro aerospace companies seek to gain 10% of the supply market in Mexico
The Tier 1 and OEM companies attached to the Aeroclúster de Querétaro seek to obtain 10% of their supply in the region in five years, anticipated […]
April 6, 2022
FreightCar America says moving production to Mexico is paying off
FreightCar America Inc. said its business is booming since it moved production to Mexico. The Chicago rail car company (Nasdaq: RAIL) announced in September 2020 that […]