Ikea, the Swedish retail group, has delayed plans to expand into Thailand due to an increasingly uncertain environment for multinational investors prompted by last year’s military coup and a series of tougher laws on foreign ownership.
An Ikea spokesman said the Thai market “is still under evaluation” by Inter Ikea Systems, which owns the home improvement retailer’s concept and trademark. An unnamed franchisee, which will further investigate the market, has been selected, she added.
The new legal environment has been criticised by some Thai politicians worried that foreign investors might leave or, like Ikea, put investment decisions on hold. Assembling flatpack furniture might be a while off yet.
