Ikea Hong Kong plans fourth store

Ikea Hong Kong will open its fourth store in the second half of this year, parent Dairy Farm International has revealed.

The new store will be located in Tsuen Wan.

News of the new store was included in Dairy Farm International’s annual results released at the end of last week. A precise location was not revealed.

The Hong Kong-listed multi-format retailer owns the Ikea franchises in Hong Kong, Indonesia and Taiwan. It will also open the Swedish furniture and homewares brand’s second store in Jakarta later this year.

The expansion follows the opening of three new pick-up points in Hong Kong, Macau and Taiwan last year to provide more convenient options for its customers closer to home.

“In parallel, e-commerce initiatives are being pursued by most of our formats to deliver a multi-channel shopping experience for our customers,” said CEO Graham Allan.

Last year, Ikea launched its online offering in Hong Kong, Macau and Indonesia, and this was expanded to Taiwan in February 2017.

Dairy Farm’s home furnishings division achieved record sales and operating profit during 2016. In constant currency terms, operating profit rose by 12 per cent to US$71 million driven by increased sales of $597 million, 6 per cent up on 2015. Sales and operating profit were higher than last year in all three markets. Like-for-like sales growth was particularly strong in Taiwan and Indonesia.

“We continued to strengthen our low price image through ongoing price investment, and increased our focus on market specific products to enhance our local consumer appeal,” said Allan.

“In the coming year, home furnishings plans both to continue its push in consumer accessibility.”