IKEA, the renowned Swedish furniture and home décor brand, is set to expand its presence in Thailand with the opening of a new branch in Chiang Mai, scheduled for 2025. This store will mirror the smaller format of the successful Phuket location, marking IKEA’s fifth establishment in the country.
Additionally, reports suggest that the company is considering a potential store in Rangsit, where it already owns land. Leonie Hoskin, retail manager of IKEA Thailand and Vietnam, highlighted that Chiang Mai holds significant growth potential for the northern region, with Rangsit also being a focal point for future expansion.
Having been in business for nearly 80 years and entering the Thai market 12 years ago, IKEA currently operates four branches in Thailand: Bangna, Phuket, Bangyai, and Sukhumvit. The company has experienced strong financial performance in Thailand, with a reported revenue of over 10 billion baht in fiscal year 2024, reflecting a 3.9% increase compared to the previous year, the highest growth rate among its regional operations.
Ikano Retail, the franchise holder for IKEA in Thailand and several other countries, noted a revenue of approximately 40 billion baht for the fiscal year 2024, indicating a 1.3% growth. In 2024, IKEA Thailand plans to implement a major price reduction on over 2,400 products, 85% of which are essential or best-selling items, as well as reduced transportation fees for truck deliveries.
IKEA’s growth in Thailand reflects its strategic approach, with the company prioritizing customer accessibility and product affordability. The first branch in Thailand opened in Bangna in 2011, and since then, the brand has steadily expanded its footprint in the country, catering to the rising demand for affordable and stylish home furnishings.
IKEA Chiang Mai Opening
Source: The Nation
