Ikea wants to expand its retail and storage space in Zličín. (ČTK)
A new shopping centre called Ikea West is to be built on available land in Zličín. According to plans that were presented to the Třebonice authorities by Ikea ČR, it should be built within the next two years south of the Rozvadov motorway connection. Four-storey building would cover the space of 2.5 hectares near the already existing Swedish furniture centre. The project includes large administrative facilities and a parking lot for 1,300 cars.
“Due to a wider range of products, it is necessary not only to enlarge the retail space but also the storage. The current building does not have such possibilities because of the surrounding houses,” said Jolana Halaničová from the company’s marketing.
Despite the company’s last week’s submission of the project, Ikea admits that the expansion has not yet been decided upon. “The Ikea West project is gradually passing through approval process at the headquarters,” Halaničová said. The company has not yet decided what to do with the current Ikea in Zličín, after the opening of the new one. “We can sell the building or keep it for further storage, for example,” said Halaničová.
Besides the Zličín store, Ikea also has a store at Černý Most in Prague, one store in Brno and one in Ostrava. “We would like to open two more stores in the Czech Republic within the next two or three years. Our intention is to buy big properties of some 30 hectares,” Andrew North, head of Ikea for the Czech Republic, Slovakia and Hungary said in September. Now the company says that it wants to focus mostly on the transformation of the current buildings. “This means increasing retail space or adding new services for customers, such as restaurants for example,” Halaničová said. Ikea increased its sales by 17% year-on-year in the economic year ending 31 August 2008, while its revenues grew by CZK 1 billion to CZK 6.8 billion.
The foursome of local furniture retail chains – Ikea, Asko nabýtek, Sconto Nábytek and Kika – reached record revenues of CZK 12.4 billion last year, some 30% up year-on-year. According to the company Incoma Reaserch, almost 50% of customers buy furniture in large retail stores. The high demand for furniture in the last few years was the result of the building boom. With the cooling of the residential market, a decrease in furniture sales can also be expected. That might also be one of the reasons why Ikea speaks about the planned project in Třebonice with caution.
Translated with permission by the Prague Daily Monitor.
