COPENHAGEN: IKEA, the world’s biggest furniture retailer, plans to spend up to €3 billion ($3.2 billion) on new shopping centers over the next 5-7 years, aiming to cash in on the popularity of its stores. The Swedish company formed IKEA Centres last year to group its existing out-of-town shopping malls and retail parks, and further develop a real estate business out of its core retail chain that sells cheap.
The division’s boss, John Tegner, told Reuters that shopping centres helped the group by attracting more customers to its stores, which lie at the heart of the centres, while providing revenues from tenants. Tegner said IKEA Centres, part of IKEA Group whose 318 furniture stores attracted 716 million visitors in the year ended August, would invest in new shopping centres in all of its markets, but mainly China.
