Winnipeg is on IKEA's radar, says a prominent local property developer.
Sandy Shindleman says the retail real estate industry is buzzing that the Swedish furniture giant will open a Winnipeg store in 2009 or 2010.
Citing reliable sources from the International Council of Shopping Centre winter conference, Shindleman says Winnipeg is next or second-next for new stores coming to Canada -- in Halifax and Winnipeg.
"I think in that order," he added. "The industry's talking about the fact we're finally on the radar."
A company spokesman confirmed IKEA has expansion plans for Canada, but Winnipeg is not in them.
"It is just a rumour," Cass Hall said of talk of a new store here.
"For now we don't have any plans for Winnipeg we can discuss right now."
IKEA turns 30 this year and is growing as a company. Hall said among its first new moves in Canada will be to expand its Ottawa store.
Winnipeggers are some of the best and most loyal IKEA mail-order customers in Canada, yet have long felt inferior for not having a storefront outlet.
FEASIBILITY STUDY
Their hopes were raised when IKEA conducted a feasibility study a few years ago on the merits of doing business here. At the time, Winnipeg did not have the magical one-million population the company says on its website it requires.
Robert Warren, a retail professor at the University of Manitoba, doubts IKEA will open a store here. The city and its catchment area cannot support the size of big box -- about 200,000 square feet -- IKEA is building now, he said.
"That store has got to do $33 (million) or $35 million in sales," he said. "If you go to their website you will see they never go into a market of less than a million people ... unless they're coming up with some new format.
"I don't think they'd come here in a million years. It's not the first time I've heard 'reliable sources say.' "
But Warren admitted he could be wrong and suggested IKEA may be moving into second-tier markets the way major retailers Wal-Mart and Superstore have done. Both Halifax and Winnipeg are considered secondary retail markets, he said.
Shindleman, whose company counts retail giants such as Wal-Mart, Home Depot, Best Buy, Old Navy and Starbucks among its clients, acknowledges the news may be speculation right now, but believes IKEA will find a home here.
"I always knew it would happen, but I wondered if I would still be in business," he said. "I thought I might be retired."
The president of Shindico Realty Inc. said an IKEA store, which needs hectares of space for customer parking and highway access for deliveries, would likely set up shop in southeast or southwest Winnipeg.
"There's quite a few choices for them," he said, noting he'd be surprised "to see it opening before 2009."
[quote][cite] trebor204:[/cite]Robert Warren, a retail professor at the University of Manitoba, doubts IKEA will open a store here. The city and its catchment area cannot support the size of big box -- about 200,000 square feet -- IKEA is building now, he said.
"That store has got to do $33 (million) or $35 million in sales," he said. "If you go to their website you will see they never go into a market of less than a million people ... unless they're coming up with some new format.[/quote]
Not sure I understand how this guy knows the sales figures needed, but 200,000 square feet is seriously large.
I think that Robert Warren is a credible source for this information, as he's the Director of the Asper Centre for Entrepreneurship and I would think he would have the numbers associated with this projection.
Nobody buys IKEA for the long term. IKEA is perfect for what its meant to be; cheap stylish and moderm furniture. Its great for students, young people moving into their first apartment, or someone who always loves changing the look of their home.
[quote][cite] mcstardancer:[/cite]Whatever. The more "affordable" furniture items fall apart, just like anything made of particle board does...[/quote]
That seems a bit wasteful, though, financially and in terms of the materials used to produce the cheap furniture. It's nice looking, I love IKEA (at least, the catalogue).
Not all IKEA furniture is made out of particle board. Only the ultra-discount cheap stuff is. But it is priced to be disposible, not a potential heirloom piece in 100 years.
There is a fair bit of stuff at IKEA that is actually really good quality and is built to last and look good. I particularily like the kitchens they have recently released and they are even made of particle board (but most kitchens these days are anyways).
[quote][cite] Sputnik:[/cite]Not all IKEA furniture is made out of particle board. Only the ultra-discount cheap stuff is. But it is priced to be disposible, not a potential heirloom piece in 100 years. [/quote]
Ha!
Anyway, having visited the boxes in Toronto and Calgary, I have seen the quality of their more expensive pieces. Classic, very nice.
The newest Stockholm store (which I believe is over just under 600,000 square feet) is apparently modelled after the Guggenheim. If I ever make it to Sweden it will be on my list to see.
It's kind of funny how a certain segment of the population's ears perks up at the very mention of this possibility.
"Please, big Swedish corporation! Set up a store in my city so that I can give you wads of money in exchange for furniture of dubious quality! I beg of you!"
Big, cheap, wholesale store, for a big, cheap, wholesale town. It's a match made in heaven. You'd think the Kenaston Power Centre was built for this. ;)
I couldn't care less, and it would probably hurt local retailers, but I'd have a hard time believing that most Winnipeggers don't want an IKEA.
When I was a student in Europe in the 80s, we boycotted IKEA because their stuff was made by slave labour in Eastern European gulags. It never occured to me to look at their stuff again after that. Are they "politically correct" by now?