Second IKEA department store in Serbia on the move to Dobanovci - Regional expansion continues with construction of another facility in Bucharest

Yesterday, IKEA officially started construction of the second department store in Bucarest and the opening is expected next summer. For Swedish giant, the region is more than attractive - outlet center in Zagreb is progressing and for the next important regional project in Ljubljana the only thing that is awaited is the ending of expropriation for access roads. In the meantime, in Belgrade 400. IKEA department store in the world 3was opened and more than 600.000 visited the facility in Bubanj potok. The question of what is next is in focus again.

Namely, in 2008, IKEA announced 5 department stores in Serbia, but it seems to be more certain that in the upcoming period there will be two facilities.

Although Vladislav Lalic, regional director of IKEA for development in South East Europe, could not specify in his interview for eKapija where and when new facilities could be opened, and how much of them there will be in Serbia, once again he stated that in 2018, the company in the Serbian market will be focused on three directions: development of the facility in Bubanj Potok, final decision on potential of retail park and purchase of a plot for another department store in Serbian capital.

Our interlocutor confirmed that the company is "active in land acquisition for another department store" and that this facility will be "on the other side of the river".

- The other department store will certainly be on the left side of the Sava River. To be more specific - on the move to Dobanovac, which is important for us because of access roads and connectivity - Lalic says for our portal.

This move, as our interlocutor adds, is traffic-intensive, and it is possible to reach in an hour or less cities such as Novi Sad, Sremska Mitrovica, etc.

The department store in Bubanj Potok was visited by about 600,000 people in less than two months, which, according to our collocutor, shows that IKEA was not wrong when the target of 2.5 million visitors was planned within a year of work.

Although he outlines that the company "has not given up 5 out of 5 department stores", announced for the Serbian market almost a decade ago, our collocutor adds that consumer habits have changed significantly in the meantime.

- We have not abandoned this plan, but we must bear in mind that it has been almost ten years since then and that the habits of consumers have changed. Serbia follows global trends, which show that more and more people opt for online shopping, and IKEA must also think about how to adapt to it. Cash & carry, or "classic shopping," will always exist, but will be complemented by other channels, such as online. The third possibility, which we have in mind for Serbia, is the opening of so-called "pick up points" or points for the takeover of goods. It is a combination of online and live shopping, where the customer orders the product and takes it away from the department store. Also, in a number of cases, a smaller part of the product range can be displayed at these points. IKEA employees here can help customers with advice, recommendations, complaints can be made, etc. In July and September, this concept was launched in Rijeka and Split, and customers accepted them very well. In this direction, we analyze the opportunities in Serbia.

For several years now, IKEA has a lot in Nis, and there, as our collocutor says, "they are monitoring the situation for now."

When it comes to the retail park in Bubanj Potok, Lalić said that a feasibility study was finalized, which positively assessed the possibilities for development of such a complex, and that in the next few months the company should come up with some more specific announcements.

(Vladislav Lalic) - For now, I can only say we are getting closer to final decision every day to open a retail park near the department store. We intensively talk with potential partners, that is, companies that would be part of the complex.

Potential investment in about 30,000-32,000 square meters of retail park is about 60 m EUR. That will also mean jobs for 400 to 450 workers more.

Department store "on pillars"

The IKEA offices in Belgrade covers the markets of Serbia, Croatia, Slovenia and Romania - which is in the company's closest focus. As our collocutor reminds, IKEA made a strategic decision to build 9 department stores in Romania, three in Bucharest and six in cities all over the country.

The first facility in the Romanian capital opened the door for customers in 2007, and it works very well, Lalic says.

(Laying foundation stone for IKEA department store in Bucharest) Another facility for which, according to Lalić, the company is fully prepared, is a long-awaited department store in Ljubljana, in which, according to plans, 86m EUR should be invested in.

- We have land, we have project documentation, licenses, completed tenders and signed contracts with 8 companies-contractors. Also, it is defined who will lead the project. What we are waiting for is that the City of Ljubljana, with which the Memorandum was signed in 2014 with which we have excellent cooperation, ends land expropriation issues for access roads construction. There are some difficulties, because it is a land of a bankrupt company. But we are very optimistic, and we expect that in a reasonable time everything will be positively completed. And when the facility is ready, it can be finished in 12 months.

Bosnia and Herzegovina at IKEA map as well

In media in neighboring Bosnia, there are more and more speculation about the arrival of IKEA. Since often such "announcements" do not come from the company's representatives, but are questionable sources, we asked regional director what is actually planned for this market and if Bosnia is on the IKEA map.

- Bosnia and Herzegovina is absolutely on our map of interest and we are analyzing it thoroughly. Some studies have been brought to an end and they gave us reasons to continue analysis. I think that in the spring, in 4-5 months, we will have clearer picture - our collocutor says, explaining that "goods takeover points" are in the game for this market as well.

- It is also one of the options but for the moment I cannot say which direction the story will go to.

Milica Milosavljevic

IKEA Srbija d.o.o. Beograd

Inter IKEA Systems B.V. Malmö

IKEA Hrvatska d.o.o. Zagreb

Grad Ljubljana