Thursday, December 8, 2022

Its physical store delayed by Covid, IKEA opens online

Swedish furniture brand Ikea has opened its doors online, although its physical store will have to wait due to delays in construction caused by the coronavirus pandemic. 

Ikea announced its arrival in Mexico last year with a 23,000-square-meter store that was to open in October in the Oceania area of ​​Mexico City. But the company now says the brick-and-mortar opening will happen in the first quarter of 2021.

The company estimated that 300 to 350 direct jobs will be created in the communities surrounding the location, which will include the brand’s Swedish restaurant with seating for up to 665 people.

But as of Monday, shoppers have been able to browse online through 18 categories of goods, including bathroom products, furniture, linens, decor, home security, plants and a host of products offered at less than 50 pesos (US $2.30) including bags, candleholders, frames, planters, containers, rugs, and curtains, among others.

However, the story is shipping only to addresses in Mexico City and certain México state municipalities.

Shipping costs are 79 pesos (US $3.69) for most items weighing less than 24 kilos, and delivery was being promised within three to five days. However, according to the website on Tuesday deliveries were being delayed by as much as four weeks due to high demand.

“Today we open our e-commerce site with more than 7,500 articles and distribution capacity in Mexico City and the metropolitan area. Why first in this area? Well, our goal is to reach as many people as possible, as fast as we can, and this part of the country is the most populated,” Ikea told Forbes México yesterday.

“In the near future, our ambition is to expand delivery to other large cities in the country, and eventually, to the entire Mexican territory.”

With the construction of the store, an e-commerce warehouse and a production plant, Ikea is investing approximately US $500 million in Mexico. Its 10-year plan for Mexico includes opening stores in Monterrey, Guadalajara, Puebla and Querétaro, the company says.

The world’s largest furniture retailer, Ikea was founded in 1943 by 17-year-old Ingvar Kamprad who was the eighth richest person in the world at the time of his death in 2018. The company operates more than 430 stores in 52 countries. 

Source: Milenio (sp), El Financiero (sp)

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