Ingka Group has agreed to purchase commercial property on Paris’ Rue de Rivoli amid acquisitions in other major cities across Europe.
IKEA, the largest furniture brand in the world, which is known mostly for its massive out-of-town stores, is working and implementing a strategy shift towards inner-city locations and has been leasing such locations.
“It is an uncertain market for the time being for retail space but we have a policy that we should own,” said Ingka Investments Managing Director Krister Mattsson in an interview. “We think that in good locations, in good cities, it’s a good long term investment anyway in the long run,” he said.
The deal for the Rue de Rivoli site is expected to cost close to the €130M mark and it is expected to close later this year.
Mattsson said the IKEA store due to open in spring 2021 will test a slightly new format showcasing more accessories and decorative items, and less furniture than the store that opened in 2019 in the nearby la Madeleine area. Other prime locations in main cities in Europe are on the cards.
