Renowned Swedish home furnishing brand Ikea is set to open its new store in Chiang Mai on February 27, expanding its presence in Thailand to five locations.
Leonie Hoskin, the retail manager for Ikea Thailand and Vietnam, stated that customers prefer shopping close to home.
Despite the increasing trend towards online shopping, Ikea continues to see the importance of maintaining physical stores where customers can directly interact with the products.
Currently, Ikea has four other locations in Thailand, including stores in Bang Na, Bang Yai in Nonthaburi, Phuket, and Phrom Phong in Bangkok.
According to Ms. Hoskin, e-commerce sales are notably strong in Chiang Mai, particularly in areas lacking physical Ikea stores.
The company’s strategy to increase accessibility for Thai consumers involves expanding both offline and online operations, prompting the new store in Chiang Mai.
This upcoming Ikea store is part of a collaborative effort involving Decathlon, CP Future City Development Corporation Limited, and affiliates of C.P. Group such as CP AXTRA, CP All, and TRUE, under the new “Life Xpress” retail concept.
The store, located at Makro Hang Dong in Chiang Mai province, is the first to embody the Life Xpress concept, hosting additional shops from brands like Decathlon, 7-Eleven, TRUE, and Thailand Post.
The new location, sprawling over 700 square meters, is designated as an “Ikea Order Point.”
It will offer more than 300 cash-and-carry products, storage solutions, and expert design and planning services, as well as a complimentary Click & Collect service for online purchases.
Additionally, the store will include a Swedish Bites corner offering snacks and treats typical of Swedish cuisine like ice cream, cakes, hot dogs, and pick-and-mix jellies.
The project represents a significant investment of approximately 15 million baht, as highlighted by Ms. Hoskin.
The primary goal of the new store is to cater to current customers while drawing in new ones, including small businesses within the region.
Ms. Hoskin noted that the success of this model in Chiang Mai will influence potential future expansions outside of Bangkok.
The company is evaluating the market potential in other provincial cities like Nakhon Ratchasima, Khon Kaen, Rayong, Surat Thani, and Hat Yai in Songkhla.
Ms. Hoskin mentioned that the decision to open new stores in Thailand over the next three to five years will largely depend on the economic climate, which she currently sees as challenging.
“We will grow in alignment with the country’s economic conditions,” she explained.
She also highlighted the positive impact of the recovering tourism sector on the economy.
In light of reduced consumer spending confidence, Ikea Thailand has reduced prices on over 1,000 products by an average of 25-30%, a move intended to support customers through economic difficulties, Ms. Hoskin noted.
