# IKEA stores owner Ingka starts on first New Zealand store
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-06-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: IKEA group starts work on first New Zealand store
Meta Description: Ingka Group, owner of IKEA stores, has begun construction on its inaugural store in New Zealand amid forecasts for further expansion in the region post-COVID.
URL: https://financedigest.com/ikea-stores-owner-ingka-starts-on-first-new-zealand-storehtml

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# IKEA stores owner Ingka starts on first New Zealand store

By Marie Mannes

STOCKHOLM (Reuters) – IKEA stores owner Ingka group has announced the official start of work on its delayed first store in New Zealand, which it predicts will be followed by other outlets as the Asia-Pacific region recovers from the COVID-19 pandemic and macro-economic shocks.

In a filing in 2022 the company referred to a proposed opening date of December 2024, but the store in Auckland, New Zealand’s biggest city, is now expected to open late in 2025.

Head of [Retail at Ingka group Tolga Oncu told Reuters preliminary opening dates were often subject to change](https://www.financedigest.com/the-future-of-retail-and-the-ways-that-retail-has-changed-for-consumers-during-the-pandemic.html "The future of retail and the ways that retail has changed for consumers during the pandemic").

These are long projects so quite often the original intent of when you actually can open doesn’t become the reality,” Oncu said, adding that the macro-economic situation in the last three years has been extraordinary.

Oncu said [Asia is a fast growing market – with the latest six-to-eight months showing a positive development – helped by China’s](https://www.financedigest.com/asia-shares-lifted-by-fed-pause-bets-china-real-estate-retreats.html "Asia shares lifted by Fed pause bets; China real estate retreats") reopening after COVID-19.

Asked about possible stores in other parts of New Zealand, Oncu said he did not expect the one in Auckland to be enough.

So one can expect that IKEA in the long [term is going to continue](https://www.financedigest.com/china-rebalancing-continues-but-near-term-headwinds.html "China: Rebalancing continues but near term headwinds") to look for opportunities to expand in New Zealand,” he said.

Although the store will be geographically furthest away from IKEA’s main operations in Europe, Ingka said the [company could mitigate the logistics impact through existing](https://www.financedigest.com/diabetic-nephropathy-market-to-generate-profitable-avenues-for-existing-companies-as-well-as-new-players.html "Diabetic Nephropathy Market to Generate Profitable Avenues for Existing Companies as Well as New Players") operations in Australia.

We have learned how to manage that, how to become more effective, efficient, more sustainable, but of course I can’t shy away from the fact that every kilometre comes with a [price tag,”](https://www.financedigest.com/high-quality-homes-without-the-high-price-tag-in-tooting.html "High Quality Homes Without The High Price Tag In Tooting") Oncu said.

Globally, there are more than 450 IKEA stores, most of which are owned by the Ingka group. The rest are controlled by other franchisees.

The [group was hard hit by supply chain issues and raw materials costs linked to the pandemic as one of the world’s biggest](https://www.financedigest.com/nearly-two-thirds-64-of-cisos-see-security-governance-and-compliance-management-as-their-biggest-investment-priority-data-from-network-group-events-shows.html "Nearly two-thirds (64%) of CISOs see security governance and compliance management as their biggest investment priority, data from Network Group Events shows") users of wood.

(Reporting by Marie Mannes in Stockholm and Lucy Craymer in Wellington; editing by Barbara Lewis)


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