Swedish furniture company Ikea has decided to set up a chain in Israel via a local licensee. Ikea’s management has considered the move several times in the past, even negotiating with a number of groups, but in the end deciding against entering the Israeli market.
In recent months, the company has been in clandestine negotiations with a number of Israeli groups, four of which have recently been named finalists. They are: Super-Sol, Super Pharm headed by Leon Koffler, the Fishman group together with Blue Square Properties (Co-op) and the Home Center group, owned by Leon Kushnir, Koor, Blue Square and Poalim Capital markets.
According to insiders, Super-Sol will most likely win the license although a final decision by Ikea is expected only at the end of this month. Ikea company heads, including the company president, are scheduled to visit Israel on April 14 for a last round of talks with the bidders before a final decision is made.
Ikea has 17 factories around the world, an annual turnover of $1.7 billion and 32 licensees. In the past, a company spokesman said Ikea receives some 150 requests per month from potential Israeli licensees. There were rumors that the Arab boycott prevented Ikea from entering the Israeli market but the company said its considerations were commercial, concerning market size.