Ikea plans to open three more stores in ČR, invest CZK 4bn

Prague, Oct 17 (CTK) - Furniture chain Ikea plans to open three new department stores in the Czech Republic in the following years, the investment in the outlets totalling Kc4bn, the company's chief executive Marek Feltl has told CTK.

The new department stores are to be built in Prague, Plzen (western Bohemia) and Hradec Kralove (eastern Bohemia).

Ikea raised sales in the Czech Republic by 5 percent to Kc7bn in the financial year ending in August.

"Our goal is to open a new department store in Prague within three to four years. We are also looking at Plzen and Hradec Kralove in a horizon of six years," Feltl said.

This year, Ikea expects a 4 percent growth of turnover. Turnover is now being stimulated by an increase in the average amount of spending, according to Feltl.

The number of clients is the same as last year, but people spend more. Czechs this year buy more furniture than household accessories.

Ikea will also launch a new online shop in the Czech Republic within three years.

"We are a little behind the times in this area. A new platform of ordering and payment will be introduced in the entire Ikea network within three years," Feltl added.

Ikea will on Thursday open its newly reconstructed department stores in Prague-Zlicin and in the Slovak capital of Bratislava. The company invested Kc240m in the reconstruction of the Prague store. Investment in the Bratislava store amounted to EUR35m. The money was used to increase retail area and reduce the environmental burden of the shops.

Sweden's Ikea opened its first shop in the Czech Republic in 1991. It now operates two department stores in Prague, one in Brno and one in Ostrava, northern Moravia.

Ikea runs a total of 321 department stores in 38 countries. Thirty-seven of these shops are owned and operated by holders of licences outside company Ikea Group.

Ikea department stores register around 590 million visitors a year.

Ikea's Austrian rival Kika also wants to build new shops in the Czech Republic. The management of the retail chain said earlier it plans to open 10 to 15 outlets in the Czech Republic.

Austrian furniture chain XXXLutz, which operates a department store in Prague, also plans expansion on the Czech market. It wants to build a second department store in Prague.