IKEA set to expand across Russia

Published: September 25th, 2014

Written by:

IKEA, the Swedish retailer, is looking to expand its presence across the regions of Russia.

The retailer is planning to come out of its consolidation period and invest €2bn between now and 2020, in expanding its shopping mall network across Russia. It already operates 14 huge shopping malls under its "MEGA" brand, which are located in the biggest cities on the outskirts of Russia.

The company is planning to construct a brand new 215000m² mall in Mytishchi in the northeastern part of Moscow, by 2018. The plan is to construct more centers in Krasnoyarsk, Perm, Voronezh and St Petersburg, according to the head of IKEA Shopping Centers Russia, Armin Mikaeli.

The retailer has held bank on new store openings in recent years and instead placed their focus on the development of existing stores. It decided to freeze Russian investment during 2011, due to unpredictable and excessive bureaucracy in some of the areas. The ‘tolerance to corruption’ by some of its staff members was an additional contributing factor to their decision.

Since the situation on both their concerns has improved dramatically, they have taken the opportunity to review their policies.

IKEA stated that in excess of 270m people used their centers last year and sales have increased by 6%.

The resilience of the company will be a strong factor as Russia goes into a period of low growth. The analytical company, Infoline, said that MEGA has seen increased attendance, whilst other retailers were losing customers.

Want to share your company’s latest updates, store openings, or partnerships?

Submit your press release or retail news to Malls.com and reach thousands of retail professionals worldwide.

Latest news

What Great Retail PR Looks Like - Future Stores

What Great Retail PR Looks Like—Lessons from Nike, IKEA, and the Art of Saying Something Real

From Nike’s storytelling to IKEA’s precision and Glossier’s human tone—the best retail press releases don’t just announce, they connect.

Successful Retailers Don’t Just Sell—They Perform

From Gucci Garden to Amazon’s Just Walk Out, leading retailers turn stores into stages. Here’s why experience is now the strongest weapon in retail.

Related malls

IKEA furniture store, Auchan grocery hypermarket, Leroy Merlin home goods hypermarket, Media Markt hypermarket electronics, 180 stores, cafes and restaurants, kids entertainment zone and ice rink.