IKEA in shopping mall push

IKEA, the world’s biggest furniture retailer, plans to spend up to EUR3 billion (USD3.2 billion) on new shopping centres over the next 5-7 years, aiming to cash in on the popularity of its stores by collecting rent from retailers keen to set up nearby.

The Swedish company formed IKEA Centres last year to group its existing out-of-town shopping malls and retail parks, and further develop a real estate business out of its core retail chain that sells cheap, mainly self-assembly furniture.

The division’s boss, John Tegner, told Reuters that shopping centres helped the group by attracting more customers to its stores, which lie at the heart of the centres, while providing revenues from tenants and assets that have grown in value.