- Ikea has an expansion plan in South America in the hands of Falabella, which acquired the franchise for the region in 2018.
- This Wednesday, August 10, it opened its first point of sale in Chile.
- The idea is to open another store in that country and two more in Peru and Colombia in 2023.
The opening of the first Ikea point of sale in South America generated unusual attention: long lines of people trying to get in and record sales.
The Swedish giant opened the first store in the region in Chile, in one of the most exclusive neighborhoods of the capital, Las Condes.
After the traditional opening ribbon was cut and the words of rigor were pronounced, the clients began to enter.
However, so many people wanted to get to know Ikea that many did not get to enter on the opening day and reserved a place for the following days.
To enter, the brand had two lines, one for those who previously registered, and another with those who decided at the last minute.
The Swedish brand arrived at Chile hand in hand with Falabella, whoue acquired the franchise in 2018.
Ikea has more than 400 stores in 50 countries and the landing plan in South America includes Peru and Colombia, also through Falabella.
In Chile, Ikea will open a second point of sale, also in Santiago, but in another shopping center (Mallplaza Oeste).
In Colombia, meanwhile, Ikea will debut in Bogotá next year.
– The Third (@latercera) August 10, 2022
In total, Falabella expects to invest 800 million dollars between 2021 and 2023 to open a total of 19 stores, both its brand and Ikea.
At the inauguration of the first store in Chile, Mario Marcel, the Minister of Finance of the recently elected Chilean President Gabriel Boric, was present.
At the event, the official described as “an important investment and a sign of confidence in our economy.” “This is a project that has been maturing for several years, the pandemic crossed, but it ultimately materialized with an investment of close to 100 million dollars,” he said.
Ikea revenue and growth
With the exception of 2020, when the covid pandemic hit the hardest, Ikea has achieved continuously growing annual revenue for the last 20 years.
After posting total global sales in 2020 of just over €39 billion, the Swedish company grew revenue again in 2021 to €40 billion, 1.5 percent more than in 2019.
Low prices are the basis of Ikea’s marketing strategy, where the key is also to try to do things as efficiently and profitably as possible.
At the inauguration of IKEA it is clearly seen how Chile will be the tomb of neoliberalism pic.twitter.com/FYchJzwhKG
— absolutely finished. End. (@lobonihilista) August 10, 2022
Ikea marketing beyond South America
The strategy of marketing of Ikea worldwide is wide and has many edges.
On the one hand, for example, it is testing new store designs that change the format of showrooms with designs far from the classics.
It’s one of several strategies it’s exploring to keep selling “physical” while adapting to e-commerce.
A store of Shanghai, for example, was revamped to test what the brand calls the “store format of the future.” It is a space where visitors can spend hours doing other things besides shopping.
Along with the showroom and small goods store, there’s a space with couches and tables where the brand hopes consumers hang out with friends.
Branding strategist reveals the secrets of interiors in IKEA stores
Ikea closes all stores in Russia and clarifies: it is not a boycott
IKEA as the new Disneyland; users compare tourist destinations