65,000-sq.mt.facility will open by 2020
Swedish home furnishing juggernaut Ikea said on Tuesday it will spend 7 billion pesos ($133 million) to open its largest store and first in the Philippines, as reported by Nikkei Asian Review.
The report mentioned that Ikea Southeast Asia, the franchisee, will make the initial investment to build up an inventory of 9,000 types of products and to set up operations.
The 65,000-sq.-meter emporium is to open by 2020. It will include a large warehouse, e-commerce facility and integrated call center, Ikea said. Ikea will lease the store from developer SM Prime Holdings, which will build the outlet in the Mall of Asia Complex, near Manila Bay.
Shares of local home furnishing retailers fell on the news of Ikea’s plan. At the noon trading break, Robinsons Retail Holdings’s stock was down 2.2% while that of Wilcon Depot had dropped 0.8%. Manila’s benchmark index was marginally up.
Ikea had 422 stores in over 50 countries as of the end of August, when the retailer closes its fiscal year. It attracted 957 million shoppers and generated $43.9 billion sales during the 12 months.