Swedish furniture maker Ikea is putting in P7 billion worth of initial investments for its biggest store in the world, which will open in Metro Manila at the end of 2020.
Ending years of speculation that started back in early 2013, company officials held an official launch at the Mall of Asia (MOA) on Tuesday, the same place where Ikea will make its first home in the Philippines.
The store will open at the end of 2020, according to Georg Platzer, market development manager of Ikea Philippines, in an interview on the sidelines of the launch.
It will be located at the MOA Complex in Pasay City, after the company sealed a long-term lease agreement with SM Prime Holdings, Inc., making the company the “largest anchor tenant” in MOA.
This was confirmed by SM Prime in a disclosure to the local bourse also on Tuesday, noting that it will be constructing the mixed-use building that will house the first IKEA store in the country.
SM did not say how much was invested to put up the building.
According to Ikea Southeast Asai, the largest Ikea store in the world will cost P7 billion worth of initial investments for its retail operations, mainly “to fit out, stock, market, and staff the first store for its opening.”
The global retailer enters the market through a franchise agreement led by Ikea Southeast Asia, the franchisee who also owns and operates seven IKEA stores in Malaysia, Singapore, and Thailand.
The first Ikea store in the country, as part of a “long pipeline” of projects, will cover around 65,000 square meters (sqm), almost double the size of a typical 35,000-square-meter Ikea store.
Ikea Southeast Asia said the building — which it compared to the size of around 150 basketball courts — will include a call center and a “supersized” warehouse to accommodate e-commerce operations.
Around 9,000 products will be featured in the store, which “will have everything people need for their home under one roof,” the company said in a statement, adding that it has pre-opened its local website for further information on its catalogue.
“A typical Ikea store includes more than 55 inspirational room settings. The self-serve warehouse has flat-packed products ready to be taken home the same day. Parents can drop off kids at a supervised playroom and there is also a restaurant with meals for the whole family,” the statement read.