IKEA to open 1st outlet in Seoul, 5th in S. Korea
Swedish furniture giant IKEA said Monday it will open its first outlet in Seoul and fifth in South Korea next month amid efforts to boost its sales in Asia's fourth-largest economy.
IKEA advanced to South Korea with its first outlet in Gwangmyeong, just south of Seoul, in 2014, and it currently operates four outlets in the country.
The three others are also located outside of Seoul -- one in Goyang, just north of Seoul; one in Giheung, 32 kilometers south of Seoul; and one in the southeastern port city of Busan.
The fifth outlet is located at the Gangdong IPARK THE RIVER complex cultural facility in eastern Seoul and is set to open on April 17, the company said in a press release.
Its newest outlet here does not take the traditional blue box form. Instead, it is accessible on the first and second floors of the facility, it said.
Blue box refers to IKEA stores, which look like big blue boxes.
"As the first IKEA store in Seoul and the first store format, IKEA Gangdong will be the centerpiece of IKEA Korea's omnichannel strategy, bringing an inspiring IKEA home furnishing experience both online and offline closer to the city center," IKEA Korea Chief Executive Officer Isabel Puig said in the release.
The Netherlands-based Ingka Group, the biggest IKEA franchisee, has 400 stores in 31 countries. The total number of IKEA stores, including Ingka's, around the world reaches 481 in 63 markets.
Globally, Ingka Group's overall sales fell 5 percent to 39.6 billion euros (US$43 billion) in the 2024 fiscal year that ended in August from 41.7 billion euros a year ago.
In the same fiscal year, however, IKEA Korea shifted to a net profit of 5.5 billion won ($3.7 million) from a net loss of 5.2 billion won a year ago.
"The company invested 10.5 billion won to lower the prices of 1,200 items at its (Korean) outlets in the 2024 fiscal year to boost sales. It worked. And increased e-commerce deals also helped the bottom line," a company spokesperson said.
Operating profit soared to 18.62 billion won from 2.59 billion won, while sales rose 4.2 percent to 625.8 billion won from 600.66 billion won over the cited period. (Yonhap)
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