Ikea expansion plans may see further Irish stores opened
Ikea has not ruled out opening a full-sized store in Cork 'in the near future'.
Swedish furniture giant Ikea has not ruled out opening a full-sized store in Cork “in the near future” as it continues to invest in expanding its presence in Ireland.
Ikea country deputy retail manager Marsha Smith hinted at the possibility of more stores in the Republic of Ireland following an announcement by the company that it will open a new warehouse in Ireland following the success of its outlets in Dublin and Belfast.
“The dream is that we will have more full-sized stores like the one in Ballymun,” said Ms Smith.
Ikea has ramped up investment into Ireland recently as it plans to open a retail order point in Cork this spring, where people can plan their kitchens and bedrooms and then order what they need, in addition to building a new warehouse in Dublin.
The warehouse will be Ikea’s first customer distribution centre (CDC) in the Republic and will be based in Greenogue Logistics Park in Dublin, which Ikea parent company Ingka Investments acquired from Palm Capital for an undisclosed sum.
The new facility is expected to reduce delivery lead times by more than half and create around 120 jobs across warehousing, logistics, and administration by the time it becomes fully operational in early 2024.
The CDC will allow the company to hold extra stock in Ireland rather than importing it from the UK or Belgium and dragging out delivery times to homes across the island.
“We want people to enjoy the Ikea experience no matter where they choose to engage with us, whether through our full-size store, plan and order points, or online,” said Jakob Bertilsson, country customer fulfilment manager at Ikea UK and Ireland.
The warehouse reflects Ikea’s recent venture into the green energy market as it will have rainwater-harvesting features and roof-based solar panels.
Last month, Ingka Investments bought a stake in a planned Australian wind farm as it seeks long-term access to renewable energy.
These announcements signal Ikea has renewed expansion ambitions for Ireland, as it opened its first store in the Republic in 2009.
The flatpack furniture seller has since opened two small collection points, one in Dublin and another in Kildare.
“We take our time to get into anything,” said Ms Smith.
Meanwhile, rival Jysk, a Danish home furniture chain, has been growing rapidly across Ireland and plans to open nine new stores this year.
The two retailers continue to purse this growth despite an ongoing cost-of-living crisis putting pressure on consumers’ pockets.
Ikea is not immune to recent financial pressures either as last year it increased prices to offset lower volumes and rising purchasing and transport costs.
In its annual trading update for 2022, Ikea’s outlook for this year was cautious due to an "uncertain environment".
Ingka Group reported a 9% rise in annual operating profit last year following the price hikes.
The world's biggest furniture retailer said it will remain “prudent and cost conscious” around investments planned for this year.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
