Having opened stores in Beijing, Shanghai, Guangzhou and Chengdu, Ikea, the Swedish household retailer, plans to open a new store in Wuhan.
Lin Xiaobin, director of Wuhan Bureau of Commerce, has confirmed that Ikea has decided to open a new store in Wuhan. With home furnishings store as its core business, the company will build Asia's biggest shopping mall in the city. The total investment will reach EUR300 million. Lin says that Ikea has clearly expressed its intention to invest and will sign a contract with the city in Expo Central China 2008.
Yang Dehua, director of Wuhan Investment Promotion Bureau, says that Ikea has been investigating Wuhan's market over the past three years. Because of the development potential and advantageous location of Wuhan, the company finally decided to invest in the city.
The development of Ikea in Wuhan will be divided into three steps. The first step is to take Wuhan as the center and then to extend the business of the shopping mall to the whole city and even to the five provinces in central China; the second step is to locate a logistics center for the central and western Chinese regions in Wuhan; and the last step is to locate a manufacturing center in Wuhan.