Ikea Philippines online store to start operations ahead of branch opening

It looks like Ikea is set to open its operations in the Philippines online ahead of its physical store opening next year. 

In a press release shared on Ikea Malaysia’s website on Tuesday, the company said it “is bringing Swedish home furnishings and meatballs to millions more people in the coming year as it enters both Mexico and the Philippines, with web shops opening up months before the physical stores in both countries.”

It also said that the world’s largest Ikea store scheduled for a 2021 opening in Manila was “designed from the start to house an ecommerce fulfilment operation and a customer contact centre.”

Ikea said that while its Southeast Asia and Mexico operations “charted its first drop in revenue by closing out its most challenging financial year with MYR 3.4 billion in turnover” or roughly $817 million, “the COVID crisis accelerated the company’s digital transformation as interest in home furnishings surged during lock-downs.”

According to the press release, the company’s nine Ikea stores in Southeast Asia posted a 7.4% drop from the last financial year after facing business closures of up to two and a half months, supply challenges and limits on building capacity.

But with ecommerce operating in all three of its Southeast Asian markets—Malaysia, Singapore, and Thailand—for the first full year, the Ikea stores were largely able to continue selling during long closures with support and guidance from government authorities.

“By the end of the financial year, customers had placed more than 525,00 online orders and rung up MYR 412 million (around $99 million) in web sales—more than double the company’s ecommerce turnover from the previous year,” said Ikea.

Meanwhile, posted on Ikea Philippines’ website: “Our first Ikea store in Manila is already under construction at the Mall of Asia, so that the many people can experience and enjoy the wonders of shopping at Ikea and having Ikea products in their homes. Later on, we will introduce more options to shop, like an online store where you can enjoy the benefits of Ikea products without having to leave your most precious home.”

In February, Ikea said the opening of its 65,000-square meter store at SM Mall of Asia Complex in Pasay City would be moved due to construction adjustments.

The company has promised more than 8,000 products that can help make everyday life at home more comfortable for Filipinos. – RC, GMA News