Swedish furniture and home accessories retailer Ikea said it will open its world’s largest store at the SM Mall of Asia Complex in Pasay City by 2020.
The company said it would initially invest about P7 billion to construct and design the store which would cover 65,000 square meters, enough to fit 150 basketball courts and nearly double the size of a typical Ikea big blue-box.
SM Prime Holdings Inc., the owner of the space, is building the store for Ikea beside MOA Arena. Ikea will hire about 500 Filipinos for the store’s operations.
The store will have two floors featuring a showroom, a restaurant, market hall, checkout area, and parking. The same building will also host a warehouse and a call center.
Ikea Southeast Asia managing director Christian Rojkjaer said the company planned to source some products locally by creating tie-ups with local furniture makers.
“The Ikea vision is to create a better everyday life for the many people, so we are excited to be bringing our offer to a country where millions of people share our passion for home,” Rojkjaer said.
Ikea Southeast Asia is a franchisee, with rights to own and operate Ikea Stores in Malaysia, Singapore, Thailand and the Philippines. It is part of the Ikano group which operates seven stores on top of developing and owning shopping centers anchored by Ikea.
Ikea carries around 9,000 well-designed, functional home furnishing products that can help people make everyday life at home a little better.
Rojkjaer said Ikea was looking for local partners to support operations in areas such as food supply, transport, waste management and security.
The shop floor will be similar to other Ikea stores but the building will also house a call center and a large warehouse to accommodate e-commerce operations.
Ikea will employ about 500 people including those who will man the call center and online platform to get orders via the internet delivered direct to their doorsteps.
It targets more than 5 million households within a 60-minute distance from the new store.
Inter Ikea Systems B.V. owns the Ikea Concept and is the global Ikea franchisor. Ikea is the world’s largest home furnishing retailer with 11 different franchises operating 422 stores across 50 countries.