Mexican will soon enjoy shopping for world-class furniture at a modest price as the world’s largest furniture seller, IKEA, is set to open brick-and-mortar stores in Mexico starting next year.
IKEA will inaugurate its first Mexican physical store in Mexico City by 2021. Afterward, it will continue to expand its presence in the Mexican market by building brick-and-mortar stores in other key towns in Mexico. The furniture company eyes to open stores in Guadalajara, Monterrey Puebla, and Querétaro.
In 2019, IKEA planned to initiate its entrance to the Mexican market this year. Supposedly, it will be opening the doors of the first Mexican store by the fall of 2020. However, COVID-19 happened, and the company was forced to put on hold the opening. It decided to reschedule the store launching in Mexico City by 2021.
IKEA In Mexico City
The IKEA store in Mexico City is located in Encuentro in Oceanía Shopping Center, east of the city. The store will have three levels that occupy a floor area of about 23,000 square meters.
The medium-sized store will offer at least 7,500 furniture and furniture-related products. It has a restaurant that can serve more than 650 people. The Mexican store also has an off-site warehouse that can be used for e-commerce.
The furniture store will also create jobs for Mexican jobseekers. The company said that they would employ between 300 and 350 workers to run it.
IKEA said that in the meantime, the company launched its online store to cater to Mexican customers’ furniture needs. Its online store offers products in 16 different categories. It also provides home deliveries, but, for now, delivery is only available in Mexico City and ten other towns in the State of Mexico. IKEA will charge 79 Mexican pesos for packages weighing up to 24 kg while charging 500 Mexican pesos for the more massive product shipment.
Expansion in Other Mexican Towns
IKEA said that they plan to open other physical stores in other cities across Mexico. The Mexico City store is just starting the company’s expansion plan in the Latin American country.
IKEA executives revealed that the company started planning for the store expansion in Mexico in 2015. Mexico will serve as IKEA’s starting point as it expands to other countries in Latin America. It plans to establish stores in Chile, Colombia, Peru, and other Latin American countries in the upcoming years.
IKEA continues to seek business expansion into new markets. It is facing growing competition in its core markets in Europe and the United States. Currently, it has 427 stores across 52 markets. Much of its sales come from stores in the United States and Europe. However, it is facing stiff competition from retail rivals, especially in vying for online shoppers.