IKEA takes the final steps to start its conquest of the country

IKEA will disembark with force in Mexico. Before the fall of 2020, the company will have invested approximately 500 million dollars in the country, 150 of them in the opening of the first store.

"We do not come to Mexico to create jobs, we come to create careers," said Malcom Pruys, country retail manager for Mexico, during the presentation of the Swedish brand.
"We do not come to Mexico to create jobs, we come to create careers," said Malcom Pruys, country retail manager for Mexico, during the presentation of the Swedish brand.

With this, IKEA aims to consolidate in this market its low-cost design concept and revolutionize the retail map. In the new edition of Expansión Magazine, Malcolm Pruys, CEO of IKEA, tells the company's plans, until now secret, for Mexico.

The Swedish firm has more than 60 countries spread across five continents, and in Mexico, for the moment, it aspires to 15% of the market share, says Malcolm Pruys, CEO of IKEA for the country.

The company chose Mexico as its gateway to Latin America, where it expects its next major expansion globally, after Asia, with the opening of nine stores in the next decade. Its arrival has been made to wait: it does it after more than 15 years of prospecting.

Now, after announcing that the first store will be located in the country's capital, his intention is to open a new store every two years. Guadalajara and Monterrey are the next openings, reveals the director.

The rest of the more than 20 cities with more than 1 million inhabitants that Mexico has been in sight. The main population centers of Bajio, Toluca, Cancun or Acapulco may be among the chosen, once the brand consolidates its initial bets.

Logistics is part of the success of this multinational's business, and the north of the State of Mexico will almost certainly become the location of IKEA's first distribution center in the country. In addition, Saltillo will receive an investment of close to $175 million dollars to host the first production center for the brand, a furniture cluster that will grow as its supply network.

To date, there are already 10 authorized Mexican suppliers that manufacture products for the home, which are sold in different parts of the world, and the CEO expects this number to increase in the coming years.

IKEA's bet is ambitious, in a country whose population has an average age of 27 years, and a few options that resemble this low-cost design model.

In contrast to the Swedish giant, the big departments, such as Liverpool or El Palacio de Hierro, and concepts such as GAIA or Alameda, still, have a little more than a year to cushion the blow.

Source: America Retail

Recommended stories

Ikea will open its first store in Mexico in the autumn of 2020

Ikea will open its first store in Mexico in the fall of 2020, will have 23,500 square meters and will require between 300 and 370 employees.

This first headquarters will be located in Oceania, in Mexico City and will also have a restaurant with a capacity to accommodate 665 people.

"We do not come to Mexico to create jobs, we come to create careers with fantastic benefits," said Malcolm Pruys, country retail manager for Mexico, during the presentation of the Swedish brand in the country.

Ikea's offer in the country will have some Mexican suppliers that comply with its sustainability conditions. Along with the physical store, Ikea will open its e-commerce service with more than 7,500 articles.

"We know that Mexico City is a big challenge, with a lot of people, but above all with a lot of interest in our products and in the solutions we offer," said Annie Chandler, store manager.