Ikea company unveils rapid China expansion

[joeblow]

Ikea company unveils rapid China expansion

Published: 28 Nov 09 12:00 CET
Online: http://www.thelocal.se/23538/20091128/

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Inter Ikea Centre Group, (IICG) a sister company of the Swedish furniture retailer, has announced plans to build two new shopping centres in China, an investment worth $1,2 billion.

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The company unveiled projects including a sprawling shopping destination in Beijing, which will house 450 brands alongside the main attraction of the city's second Ikea store, set to open in 2014.

A further development will be located in Wuxi in the eastern Jiangsu province and a company statement confirmed further investment in China is likely to surface in the future.

China is the group's first investment destination outside its home of Europe where it has interest in 13 countries.

Since its flagship China store opened in Shanghai in 2003, Ikea has added a further six stores across the country.

The Chinese market accounted for about two percent of Ikea's global total in 2008.

"Although well-known in China, IKEA's pace of expansion has been relatively slow in the country," said an IICG company statement.

"Now when Inter Ikea Centre Group moves into the Chinese market, both are expected to see accelerated development in China."

IICG was founded in 2001 and is based in Copenhagen, Denmark.

TT/Christine Demsteader (mailto:news@thelocal.se">news@thelocal.se)