Retailers ‘need not fear’ Ikea lands
Philippine retailers have nothing to fear when Ikea lands in the country, according to Ikea Southeast Asia MD Christian Rojkjaer.
In fact, furniture and homewares retailers located near planned Ikea stores stand to benefit, based on the experience of Thai homewares brand Index Living Mall.
“What we have seen in Thailand is that the local competitors do better when we come, even though we compete with them,” Rojkjaer said in an interview with Inside Retail Asia.
“We do great and they also do great. Because the middle class is coming up in all these countries, there is a very big market for all of us to coexist.”
He says Index Living Mall, was “very nervous” when Ikea moved into Mega Bangna, where it had a flagship.
“As far as I know, the Index Living Mall [at Mega Bangna] is the outlet that does best for them. That is because the broader area has become a destination for home furnishing, and we all live well together even though they are hard competitors and very professional. They have a fantastic range as well.”
Ikea Philippines will open its first store adjacent to the Mall of Asia in Manila. The company is evaluating additional sites and has not yet decided whether future stores will be located adjacent to other shopping centres or it will develop its own shopping centres anchored by Ikea, as it has done in Malaysia.
Ikea Philippines will open its first store in 2020.