Swedish furniture giant Ikea is expanding its presence in the Israeli market. The chain opened its fifth store in Israel today in Tel Aviv. As reported in "Globes," the new store, which will focus exclusively on sales of kitchens, is in Pavilion 11 in Tel Aviv Port, surrounded by home products stores.
The store has only 500 square meters, making it the size of a neighborhood supermarket. NIS 3 million was invested in its construction. Ikea's previous branches in Israel range from 22,000 square meters to 34,000 square meters, making the new branch only 2% the size of the chain's previous smallest branch in Israel.
The store displays 14 different kitchens, and has places for meetings with kitchen designers and an option for buying electric kitchen appliances. The company says that it has only one such store in the world - in Stockholm, making the Tel Aviv store the first such Ikea branch in the world outside Sweden.
Ikea Israel CEO Shuki Koblenz says, "Opening the store expands Ikea Israel's presence in the kitchens category." Opening the store is part of a broader strategic measure by Ikea that includes renovating and upgrading the kitchen departments in the chain's stores in Beer Sheva, Kiryat Ata, Rishon Lezion, and Netanya. The kitchen departments display design options, including a range of faucets and handles from Ikea's catalogue sold in Israel. The store has no products for the home, garden items, towels, or even kitchen accessories.
In addition to the Tel Aviv store, Ikea already has four stores in Israel and one more under construction. Ikea's first store in Israel, built in the Netanya industrial zone in 2001, covers 23,000 square meters. The second, built in Rishon Lezion in 2010, is the largest, covering 34,000 square meters. The third, which was opened in Kiryat Ata in 2014 with a slightly different concept, is part of a shopping center. Another branch was opened in Beer Sheva in 2018, and a fifth is under construction in Eshtaol, close to Beit Shemesh. Opening of this 25,000-square meter store is scheduled for 2020.
Published by Globes, Israel business news - en.globes.co.il - on March 27, 2019
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