Ikea rolls out first store in North Carolina
By Clint Engel -- Furniture Today, February 23, 2009
Charlotte, N.C. — Charlotte, N.C.— Thousands of people waited for hours in a cold rain last week for the opening of Ikea's 36th U.S. store here and a chance to go home with a free Poang chair or other giveaways.
The 356,000-square-foot, two-level store is pretty standard for the Swedish home furnishings specialty retailer and Top 100 giant, but for many of the consumers who waited outside — some for more two days — it was a new experience.
They loaded up on everything from pots and pans, toys and houseplants to upholstered chairs and bookshelves.
Inside the crowded blue and yellow box, consumers browsed through 49 room settings and three model homes that showed off how to make the most of limited spaces. In the 350-seat restaurant, they dined on everything from Swedish meatballs to Ikea's signature $1.99 breakfast featuring scrambled eggs, bacon, potatoes and a free cup of coffee.
Joseph Roth, director of public affairs for Ikea North America, said bad weather has never affected the turnout at the company's openings.
"Rain or shine, snow or humidity, we build it and they come," he said.
That doesn't mean Ikea is immune to the economic downturn. Annual U.S. revenues from U.S. stores and e-commerce were up about 9% from the year before to $3.16 billion. That was down from 16% growth in 2007.
Still, Ikea contends it can gain in this climate with an emphasis on its pricing and value story.
Mike Ward, the new president of Ikea U.S., said the economy isn't influencing the retailer's operating and growth strategies, which are already in place for the next few years.
The next Ikea will open in Tampa, Fla., this summer and additional stores are planned in Somerville, Mass., in greater Boston, probably in 2011, and later in Centennial, Colo., near Denver.
A new distribution center is planned for Joliet, Ill., outside of Chicago, which eventually will support additional expansion in the Midwest, Roth said.
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