IKEA Cyprus launches catalogue prior to September opening

The budget furniture store IKEA has started the door-to-door delivery of some 305,000 catalogues prior to the first store opening in Cyprus on September 6 within the busiest commercial square mile on the outskirts of Nicosia.

Vassilis Fourlis, president of the operator of the furniture franchise that already has two IKEA stores in Greece, said that the EUR 40 mln cost to set up the 20,000 sq.m. store makes it one of the biggest foreign direct investments in Cyprus and expects to see the same rapid performance witnessed with the other two stores in Greece.

The Fourlis Group, a leading trading and retail company, aims to report EUR 600 mln in sales this year, up from EUR 482 mln reported in 2006.

Strategically located within the ‘Mall of Cyprus’ at the Shacolas Emporium Park that will include retail stores, clothing shops and food outlets, IKEA Cyprus will employ 300-350 people, and will have 800 parking spaces on two levels.

The store itself will have 6,500 different products on display, coordinated into 52 special rooms and three ‘complete homes’ so that the customers can get a real feel of the goods within a familiar environment. It will also have a Swedish eatery, the Smaland children’s play area and the Exit Café.

Although IKEA products can no longer be placed in the ‘low cost’ category, they are known for their functionality, simple designs and affordable prices.

Marketing Manager Anta Yianneski preached during a media presentation on Monday the concept of the “lowest prices in the market” and not necessarily the cheapest.

The Fourlis Group announced in October 2005 that it was to build the first IKEA store on the island, through its HM House Market (Cyprus) Ltd. subsidiary. It was initially expected to commence operations last month.

Fourlis’ flagship store with a floor space of 20,000 sq.m. opened in Thessaloniki in 2001, followed by a second 25,000 sq.m. IKEA store near Athens airport in 2004. A second Athens outlet is expected to open in September and the Group also plans to open a new IKEA outlet in Bulgaria in 2008.

The annual turnover of Fourlis’ House Market division following the full operation of all three stores is expected to top EUR 300 mln this year, with total sales reaching EUR 200,8 mln in 2006, on 4,2 mln customer visits.

IKEA Cyprus is expected to generate annual sales of EUR 40-50 mln, Vassilis Fourlis told Reuters in an interview last October.

The IKEA opening is regarded as a welcome move in Cyprus, after the IKEA-owned Habitat franchise in Nicosia closed unceremoniously last December due to troubles at the Greek franchise operator, Franco Import.