IKEA confirms Yas Island store will lead to further Middle East expansion

IKEA UAE also confirmed the 29,642sqm store will be the biggest ever in the Mena region and a strong impetus for the Swedish giant to push ahead with plans to expand into Oman and Qatar, in addition to opening more stores in Saudi Arabia. The popular store in Dubai Festival City is spread across 25,400sqm. IKEA has an existing store in Abu Dhabi at the Marina Mall.

IKEA UAE's general manager Mile Franicevic said the company was looking forward to be one of the first globally recognised companies on Yas Island. The gigantic store will form part of Yas Island's retail centre, based around Yas Mall, which will accommodate a mix of retailers.

"We are very excited on the potential of this super big IKEA store on Yas Island. We have already determined the ideal store size and depth of range, and are hoping to be up and running by the end of next year," Mr. Franicevic said.

"Our business continues to grow in the Middle East even in the present economic environment. This is proof of the strength of the IKEA brand in this part of the world and the intense loyalty of our customers. We expect around 1.3 million visitors to the Yas Island store in the first year of operations with more than 60% of them being cash customers," he added.

Mr. Franicevic's positive outlook comes close on the heels of IKEA reporting record global earnings of EUR21.5bn (Dhs115.93bn approx) for the period 1 September 2008 to 30 August 2009.

IKEA on Yas Island will have 1,563 parking bays for its visitors who will be served by 26 cash tills at the back of a total sales area of 18,100sqm. Alongside Home Accessories (6,000sqm) and Showroom Furniture (6,150sqm) areas, there will also be a 600-seat, 2,100sqm restaurant serving popular Swedish delicacies as well as its healthy and affordable breakfast and lunches.

Mr. Franicevic also said that the size of the store was an important factor in enabling IKEA to keep its prices low. "The IKEA vision is to offer a wide range of home furnishings of good design and function at prices so low that the majority of people can afford to buy them," he said.

"IKEA achieves this through clever product design, cost effective manufacturing, buying in bulk and transporting in flat packs; and also by asking the customer to do some of the work themselves: they select their own furniture, collect it from a massive self-serve warehouse, take it home with them and then assemble it themselves. The big stores are an important part of making this concept work," he concluded.