Saturday, January 19, 2019

Ikea in Paris, a challenge for the furniture giant


The Swedish furniture giant plans to open a store in June on 5,371 m² of retail space around the Place de la Madeleine in the 8th arrondissement of Paris.

By Cécile Prudhomme Posted today at 11:00 AM, updated at 11:00 AM

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The arrival of Ikea in Paris is precise. The Swedish furniture giant is currently planning to open its store in June, on 5,371 m² of retail space around the Place de la Madeleine in the 8e Paris borough, according to our information. "It will open before the summer", says Walter Kadnar, CEO of Ikea France. At the end of 2014, the company announced its intention to establish itself in the capital "To facilitate access to its offer for people living in the city center", a customer base of which almost 70% do not have a vehicle and 30% do not have a driving license.

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On the ground floor, the sign will install a restaurant. There will be no furniture to take away because the store will have no large storage, only small items (textiles, candles, towels, accessories ...) can be purchased on site. There will also be no labyrinthine route imposed on customers, but a presentation of the products "In the form of planning solutions for small spaces"says Kadnar. Stated objective: that this store allows both to shop, order larger products and serve as withdrawal point. "Orders from customers in Madeleine will be processed by 3 of our 7 stores in Ile-de-France and a warehouse that we will open in Gennevilliers in February. We will also develop the withdrawal points, which will increase from 25 to 100 at the end of August "says Kadnar.

Deletion of 7,500 posts

This new location illustrates the turn taken by the group in November 2018 towards online commerce and downtowns. Hitherto used to managing more than 20,000 square meters of outlying stores, Ikea had announced that in-house business transformation could lead to the elimination of 7,500 jobs worldwide by 2020. Kadnar says that 'there is "No plans for dismissal in France".

In his Paris store, Mr. Kadnar expects "3 million visitors a year, like our Paris department stores". In one year (from September 2017 to August 2018), 58.2 million people attended the group's 33 French stores. "In Paris, the average basket should be smaller at the place of purchase but more frequent visits"he continues. It remains to be seen what the repercussions will be on the shops in the suburbs, which for some account for a quarter of their activity with the Parisian clientele.

Cécile Prudhomme

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