EU – Baltic States, Lithuania, Markets and Companies, Woodwork

As reported, Icelandic businessmen who brought the Swedish world-famous Ikea store to Lithuania have decided to enter the Estonian and Latvian markets as the next step. The construction of an Ikea store starts near Vilnius airport in spring. After expanding to Lithuania, Ikea is now more willing to expand to Estonia and Latvia too, not directly at the initiative of the Ikea group but two Icelandic retail trade businessmen, brothers Sigurdur and Jon Palmason, who develop also the Ikea store in Vilnius that will be opened next year, writes LETA/ELTA.

Furniture enterprise SBA admits that Ikea's arrival would affect its trade business, on the other hand, Lithuania-based furniture company Vilniaus Baldai is confident in its market position worried about the arrival of the Swedish concern as they are not the competitors.

Concern SBA pointed out that Ikea will have an influence on its chain of stores Idejos Namams (Home Ideas).

"There is no doubt that buyers will be interested and will visit the worldwide known store. On the other hand, we offer wider choice of decoration details, various designs - more than just Scandinavian design furniture, and that is the reason we expect to keep and 'regain' the customers who like different styles of design", said Deputy President of SBA Egidijus Valentavicius.

More than 90% of the SBA's production is sent to 326 Ikea stores in 38 countries worldwide.

Aidas Mackevicius, Head of Vilniaus Baldai, said that they received no information on the planned Ikea store.

"We do not know when Ikea will establish a store in Lithuania, and whether that will happen at all. When we will receive orders to print furniture assembly instructions in Lithuanian language, that’s when it will be clear", pointed out Mackevicius.

The enterprise of Iceland capital Felit is planning to open one Ikea store next to the international Vilnius airport investing up to 47 million euros (about 163 million litas) and additional 60 million euros (207 million litas) in other commercial objects. The staff will reach up to 200 people.

Felit plans to establish Ikea store on a franchise agreement, the size of the store would reach up to 30 000 sq meters.