Ikea is com­ing — but don’t hold your breath

Weekend Herald - - Viewpoints -

New Zealan­ders like to shop. They hap­pily head to the malls and open their wal­lets for prod­ucts they don’t al­ways need even when they could stay at home and shop online.

The Swedish giant Ikea recog­nises this im­pulse to con­sume along­side other cus­tomers is as strong here as in ev­ery other mar­ket it op­er­ates in and is com­mit­ting to bring­ing its par­tic­u­lar brand to the big box land­scape.

Ikea also seems to think that a slow burn ap­proach will work in its favour. So yes­ter­day when it con­firmed that yes, it is com­ing, its ad­vance guard of ex­ec­u­tives would not say ex­actly when or where it plans to fly its re­tail flag.

A $90 mil­lion in­vest­ment in a fullser­vice store has been men­tioned, so the fi­nan­cial stake Ikea contemplates is sig­nif­i­cant. It sug­gests 200 or so jobs could be avail­able in its new store, a frac­tion of the 200,000 peo­ple em­ployed in the broad re­tail in­dus­try.

The brand is hardly rush­ing to open its doors. The first store, some­where in Auckland, will be up in run­ning “within a few years.” That could be nearly 10 years away.

A sec­ond shop will fol­low in the South Is­land, with a lo­ca­tion yet to be de­ter­mined. Again, no de­tails on the open­ing date.

New Zealan­ders, we know, like to buy and they like a bar­gain. They don’t like be­ing taken for a ride.

Ikea ought to bear that in mind as it adds New Zealand — some­time in the next decade — to the 50 coun­tries in which it op­er­ates.

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.