Ikea expansion in China moves ahead

Swedish furniture giant Ikea plans to invest $60 million to set up a new outlet in northern China to cash in on the fast growing Asian market, China’s state media reported on Tuesday.

The company has inked a primary deal with local authorities of coastal Tianjin city and the construction of the new store is likely to start this summer, China Daily reported, citing Ian Duffy, president of Ikea Asia-Pacific.

“Tianjin is, without any doubt, one of the most progressive and rapidly growing cities in China now,” Duffy was quoted as saying, adding that the city will offer a golden business opportunity for Ikea.

Ikea opened its first Chinese store in Shanghai, the country’s financial hub, in 2003 and currently runs five stores across mainland China, including one in the capital Beijing.

The company plans to open new stores in Nanjing in southern China and Dalian in northern China this year and continue to open at least one or two stores each year in the country, the newspaper said.