Ikea brings jobs and competition
Ikea is coming to Auckland, followed by the South Island – and it’s bringing its famous meatballs, and up to 400 jobs.
The company’s New Zealand manager, Will Edwards, confirmed yesterday the new Ikea store will open in Auckland, and he also promised a second outlet for the regions.
‘‘Kiwis have been asking for a long time. The blue and yellow building is iconic.’’
The announcement was made at Auckland’s waterfront venue The Cloud, by its global chief executive Jesper Brodin, to about 100 people, including media, retail experts and the Swedish Association. The Ambassador of Sweden, Par Ahlberger, told the audience he was also an ambassador for Ikea.
There will be between 300 and 400 jobs to come, and Ikea would stock 7000 products. The pricing would be affordable and competitive with local retailers, Edwards said.
The main flagship operations will be in Auckland because of its reach.
‘‘We will move swiftly, as quickly as we can, next step will be in [the] South Island and then work our way up.’’
There were many sites of interest, but it was too early to say any more than that, he said. Ikea was looking at potential locations with both government agencies and the private sector.
Although Edwards would not provide specifics, he said Auckland would be getting the classic iconic Ikea megastore.
‘‘That’s the very least the New Zealand people can get after waiting all this time.’’
The company would bring everything it could to Auckland as soon as possible, and it had the infrastructure to do it all at once, he said.
Edwards, whose title is New Zealand market leader, was tight-lipped on potential locations, an approximate opening date and size.
‘‘It will be open in the next few years, you’ve waited 76 years, you’ll have to wait a little bit longer. It can’t be done overnight.’’
Edwards said Ikea would not be looking to source materials locally, except for food. The Ikea meatballs will be part of the deal.
Kiwis have waited for years for Ikea’s arrival, and more than 19,000 people have liked the Facebook page ‘‘bring Ikea to New Zealand’’.
There was room in the New Zealand market for Ikea, Edwards said.
‘‘Not many international brands have established in New Zealand, that is why the homewares section is shallow.
‘‘We believe competition is healthy. We will fill a gap in the market and complement what is already here.’’
Since confirmation of its arrival last month, the retailer has created a lot of buzz, and speculation on sizes and locations.
Ikea came very close to opening its first Kiwi store in 2008 but lost a four-year pursuit (see sidebar).
Hamilton then put its hand up in late 2009 to host an Ikea outlet. Its economic development agency invited Ikea scouts to visit the city, but the response from the Australian franchise owner was reported to be lukewarm.
The 76-year-old company was founded by Ingvar Feodor Kamprad and the name was derived from his name and birthplace – Ingvar Kamprad Elmtaryd Agunnaryd.
Kamprad died last January aged 91. According to the Bloomberg billionaires index, he was estimated to be worth US$58.7 billion (NZ$87.29b) upon his death.
In New Zealand, Ikea is likely to be put into the same space as the Warehouse, Nood, Freedom Furniture, Briscoes, Kmart, Bunnings, and Mitre 10, although Harford said Ikea was more of a young person’s brand and more mature furniture buyers would possibly go elsewhere.
Auckland Chamber of Commerce chief executive Michael Barnett said Ikea’s arrival was good news for the country, bringing a new range of products, pricing and competition to the market.
‘‘It’s a good thing for New Zealand,’’ Barnett said.
‘‘Yes, it’ll put pressure on the smaller retailers, but when Bunnings and Mitre 10 started out they put pressure on existing players, it’s the new way – to have a megastore and sell products at a cheaper price.
‘‘It’s good news for the DIY guy, for students, and it will create more jobs in construction and retail.’’ Experts say the sodium nitrite commonly used in preserved meats is as big a health concern as fat and sugar.
Campaigners in the UK have called for action to raise awareness of cancer risks from products such as bacon and ham, saying the nitrites used to preserve the meat can be deadly.
In a joint statement, a senior food scientist, cardiologist and nutritionist said the issue should be taken as seriously as fat and sugar levels in food.
Bacon is most commonly processed using sodium nitrite, which the World Health Organisation (WHO) has linked to an increased risk of bowel cancer.
It helps to preserve the meat by eliminating bacteria, but also helps to keep the bacon pink.
When meat processed using sodium nitrite – sometimes listed as ‘‘Preservative (250)’’ – is cooked and eaten it creates carcinogens called nitrosamines, cardiologist Aseem Malhotra said.
‘‘When it comes to nitrosamines, there are no ifs, nor buts; they are carcinogenic. Yet, despite these facts, the vast majority of bacon on sale today still contains these dangerous carcinogens.’’
In New Zealand, the use of nitrites is regulated by Food Standards Australia New Zealand (FSANZ). They can only be added to specified foods, and can’t exceed maximum levels given in the Australia New Zealand Food Standards Code.