IKEA is scouting three cities in Mexico to determine where it will place its first store locations in the country. The home furnishings retailer is looking at sites in Mexico City, Guadalajara and Monterrey.
Stores in Europe and the U.S. drive the majority of sales for Inter IKEA Group and its franchisees, but the company is seeking growth elsewhere: late in 2018, IKEA announced plans to enter Latin America, starting with Chile in 2020, followed by Colombia and Peru. Presently, IKEA has 427 stores across 52 markets.
While IKEA hasn’t revealed the type of store formats that would be placed in Mexico, given the density of the Mexico City metropolitan area — estimated at more than 20 million people — a city center may make more sense to capture the urban shopper rather than the traditional warehouse-size store located on the city’s outskirts.
