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IKEA opens its first store in South America in Chile

As it enters its new market, IKEA is starting to expand into the continent.
IKEA Chile

Swedish furniture giant officially opened a store in Santiago, the capital of Chile, on August 10. At the same time, the company launched an online store, a distribution center and pick-up points available to most residents of the country. The store will include a 1,410-square-meter IKEA restaurant with 330 seats. 

In the near future, IKEA plans to open a second store in Santiago de Chile through franchising. As it enters its new market, the company is starting to expand into the continent - in the future, IKEA stores will also appear in Peru and Colombia.

"This is a historic and special day for us, as we open the very first IKEA store on the South American continent," commented Jon Abrahamsson-Ring, CEO of Inter IKEA Group.

Falabella, an international chain of department stores owned by the Chilean company S.A.C.I. Falabella, is a partner in developing the chain on the South American continent. The company, which has 130 years of history, is the leading retailer in Latin America, has offices in seven countries and has 107,000 employees. Its portfolio includes the Falabella, Sodimac, Tottus, Banco Falabella,, Mallplaza, FPay brands, which the IKEA franchise joins. 

As of the third quarter of 2022, IKEA operates about 470 stores in 65 countries. IKEA's impending entry into the Chilean market became known back in 2018, when the company signed an agreement with Falabella. Construction of the first store began in March 2021. The opening of the company created more than 820 new jobs in the country. 

The third quarter was strongly influenced by the decision to cease sales in Russia and the subsequent closure of the business.
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