The world’s largest furniture retailer is expanding rapidly in Asia. Ikea debuted the first of 25 stores in India in August.
The Mall of Asia complex sits across Manila’s gaming district where integrated casino resorts worth more than $1 billion each have sprouted and attracted mainland Chinese tourist traffic that has driven up property prices.
Ikea Southeast Asia Mananing Director Christian Rojkjaer announce that Ikea will debut a 65,000 square meter (700,000 square feet) store in SM Prime Holdings Inc.’s Mall of Asia where it’s leasing a space that’s equal to more than 150 basketball courts. A typical Ikea big blue-box is about 35,000 square meters.
Ikea will spend an initial $134 million to build, stock, and staff the store, which will carry 9,000 products, Rojkjaer said. The Manila complex will have a two-level shop, a warehouse, an e-commerce facility and a call center that will serve more than 5 million households within a 60-minute radius. The company will employ 500 staff.
The Philippines, where the growing middle class is forecast to spend more than Italy’s by 2030, has a population of more than 105 million people dominated by a working-age demographic. The economy has expanded above 6 percent for 13 straight quarters, fueled by private consumption which makes up the bulk of gross domestic product.