Ikea’s shopping malls business, Ingka Centres, has opened a mixed-use project in Shanghai, costing over US$1.14bn) and representing the group’s largest single investment in China.
Shanghai Livat, in downtown Changning District, includes the city’s fourth Ikea store, over 300 branded shopping-mall tenants, five office buildings and community facilities – including a treehouse playground and “Scandi Village” in a nod to the group’s Swedish heritage.
The world’s second-biggest economy has been struggling for growth, particularly in retail where consumer confidence is low.
However, challenging environments present opportunities for firms willing to continue to invest and evolve, said Cindy Anderson, Managing Director of Ingka Centres. “It is not the time to lean back and do what you always did, it’s really important to lean forward now and develop the offer,” she said.
This type of mixed-use development has an advantage over traditional retail models because they are community-led rather than commerce-led, Anderson said. “Specifically in China … having space for the community, that note of joy, playfulness, we know that’s really important for the Chinese customer,” she said.
