IKEA to open mega store

Targeting the masses of Taipei County, Swedish furniture retail giant IKEA will open its third outlet, in Sinjhuang (新莊), today that will be the nation's largest furnishing store.

IKEA invested NT$1.5 billion (US$46.8 million) in the Hsinchuang store, which at 8,200 pings (27,060m2) is twice the size of Sinjhuang Stadium.

The huge space houses 55 realistic display rooms and more than 6,500 items, Justine Yao (姚以婷), director of IKEA Taiwan's marketing division, said yesterday.

"We expect to greet about 20,000 visitors per day, reaching the 100,000 mark in the opening week," Yao said.

"We believe the dense population in Taipei County will be a big boost to our business," Yao said.

One advantage of the Sinjhuang store is its location. With the Sun Yat-sen Freeway and several bridges nearby, the store can attract residents from Sanchong (三重), Tucheng (土城), Jhonghe (中和), Yonghe (永和), Banciao (板橋) and other places, she said.

IKEA will also provide shuttle buses that will pick up customers from nearby MRT stations during the grand opening week.

Even though consumption has been hammered by the growing consumer debt problem caused by abuse of credit and cash-advance cards, demand for furniture and home appliances still exists, Yao said.

Yao refused to reveal IKEA's sales figures, saying only that its local business has risen steadily over the past few years.

From its current locations in Taipei's Asia-World, Taoyuan and Sinjhuang, IKEA is planning to expand into central and southern Taiwan, but the locations and timing were undecided, she said.

She said the company was evaluating whether to stay in its Asia World location or relocate since its lease there is up in 2008.

Meanwhile, Hola Home Furnishings Co (特力和樂) announced yesterday that it will open a new storefront in Hsinchu tomorrow, its 11th outlet.

A major customer segment for Hola in the region is the growing number of young people working in the Hsinchu Science Park (新竹科學園區) and their families, Hola president Chen Yen-chun (陳彥君) said.

Another growth factor will be the high-speed railway, which will turn Hsinchu into a consumer hub for northern Taiwan, Chen said.

Hola plans to open two more stores by the end of the year, the company said. It reported sales for the first quarter rose 11 percent to NT$787 million from a year ago.