Business Expansion in Russia: IKEA Plans to Upgrade its Locations

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The Wall Street Journal on
Business Expansion in Russia

Business Expansion in Russia: IKEA Centers Russia is investing at least $2.1 billion to upgrade and expand its current portfolio of 14 locations across Russia.

Shopping center operator to invest about $2 billion to redevelop portfolio of 14 properties anchored by namesake furniture retailer.

Russia’s economy may be slumping, but there appears to be a bright spot in the retail sector.

Sweden-based privately-held IKEA Centers Group has built and operates more than 50 shopping centers with furniture retailer IKEA as its anchor tenant in other countries in Europe, Russia and China.

In Russia, they are known as MEGA malls and the vacancy rate of its portfolio is now around 1.4%. The company says its MEGA centers have an average of 200 stores and bring in 275 million visitors a year.

“More retailers want larger space to showcase their products,” said Olga Shevtsova, head of sales and commercial development at IKEA Centers Russia.

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