Business news from Ukraine

IKEA IN UKRAINE PROCESSES MORE THAN 150,000 ORDERS DURING ONE YEAR OF WORK

During one year of operation in Ukraine, IKEA has processed more than 148,000 orders in an online store and more than 8,000 orders in a bricks-and-mortar store in Kyiv, the press service of the company has told Interfax-Ukraine.
As reported in its press release, IKEA began entering the country’s market on May 14, 2020 with the launch of an online store. As of the end of April 2021, more than 2.528 million Ukrainians have already visited the company’s website.
The first bricks-and-mortar store of the urban format was opened on February 1, 2021 in Kyiv’s Blockbuster Mall. During the first months, it received over 397,000 visitors.
“I want to emphasize that the Ukrainian market is very important for IKEA. We strive to expand our activities on it, offering a wide range of functional products with attractive designs and prices for as many Ukrainians as possible,” the press service said, citing IKEA Market Leader in Ukraine Florian Mellet.
According to the press service, now IKEA in Ukraine offers about 5,000 affordable goods and solutions for home in all categories and styles of its assortment.
The most popular items in the online store are PARKLA storage boxes, SPRUTTIG hangers and ISTAD sealed bags. At the same time, SPRUTTIG hangers, OFTAST plates (white, 25 cm) and BERGENES bamboo stands for a mobile phone/tablet are most often bought in the IKEA bricks-and-mortar store.
In May 2020, the official launch of the IKEA online store in Ukraine took place in parallel with pick-up points in the Kyiv shopping centers Auchan Rive Gauche and Metro Cash & Carry. In December 2020, the third pick-up point was opened at the Lavina Mall.
The Kyiv office of Baker McKenzie provided legal support for the opening of an IKEA bricks-and-mortar store in Kyiv.

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IKEA LAUNCHES ONLINE STORE WITH POINTS OF DELIVERY IN UKRAINE

The Swedish company IKEA, the world’s largest retailer of furniture and household goods, on May 14 officially launched the possibility of ordering goods from an online store in Ukraine, distribution points will operate in the Kyiv shopping center Auchan Rive Gauche and Metro Cash & Carry.
“Remaining faithful to its desire to create a better everyday life for many people in Ukraine, IKEA is pleased to announce the start of work in the Ukrainian market and the launch of an online store. Currently, the Swedish retailer offers Ukrainian customers about 3,600 functional home goods of all categories and styles with attractive design and prices. An order can be made on the website www.ikea.ua,” the retailer said in an official statement.
It says buyers will be able to choose where and how to pick up their goods: in one of the points for receiving orders in Kyiv for free or using the home delivery service.
“Today two points are ready to start work – at Auchan Rive Gauche and Metro Cash & Carry. The delivery service is organized in cooperation with DB Schenker. We do everything to ensure smooth online purchases, however we will be grateful for your patience and understanding in case of possible delays during the first few days of work,” the press release says.
It emphasizes that the functioning of the company is organized in accordance with IKEA security measures, as well as in accordance with the requirements and instructions of the government of Ukraine. All employees will have access to the necessary protective equipment and will work in compliance with recommendations on social distance.
After the launch of the online store, IKEA plans to open its new city store in Kyiv as soon as possible. The company has recently signed a lease agreement with Blockbuster Mall”, the company confirmed.

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SWEDISH IKEA DECIDES TO OPEN STORE IN UKRAINE AFTER LAUNCHING E-COMMERCE IN SPRING

The Swedish company IKEA, the world’s largest retailer of furniture and household goods, has updated its plan to enter the Ukrainian market, deciding to launch e-commerce first. “In order to make the range of IKEA functional products with attractive designs and prices affordable for as many people in Ukraine as possible, the company decided to launch e-commerce first. The expected launch date is spring 2020,” the company said. At the same time, they confirmed their intention to open a store in Kyiv.
“IKEA confirms its commitment to Ukraine and plans to open the first store in Kyiv as soon as possible after the launch of e-commerce,” the company said.
As reported, in the summer of 2019 IKEA announced the launch of an official website for Ukrainian consumers and the recruitment of staff to work in the first urban-format store in Kyiv (about 100 employees). The opening of the store was scheduled for the end of 2019.
In September 2018, IKEA officially announced the opening of the first city store in Ukraine in 2019. The facility was supposed to be opened in the Ocean Mall trade center in Kyiv. However, the retailer later said that due to the delay in building the shopping center, the company is considering alternative ways to start business in Ukraine.
The network in Ukraine is developed by IKEA Southeast Europe, which is part of IKEA Group (Ingka Holding B.V.). The company is engaged in the retail business of IKEA in Croatia, Serbia, Romania, and Slovenia.

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IKEA UPDATES PLAN OF ENTERING UKRAINE

The Swedish company IKEA, the world’s largest retailer of furniture and household goods, has to adjust its plans to enter the Ukrainian market due to the delayed construction of the Ocean Mall trade and entertainment center in Kyiv, in particular, the company is considering alternative ways for launching business in Ukraine.
“IKEA confirms its desire to change the daily life of Ukrainians for the better by offering affordable products and solutions for home. Due to the delay in construction and obtaining permits for the Ocean Mall shopping center, the company is considering alternative options that will allow it entering the Ukrainian market as soon as possible,” the company told Interfax-Ukraine.
The report says more detailed information regarding the release of IKEA in Ukraine “will be made public as soon as it becomes available.”
As reported, in September 2018, IKEA officially announced the opening of the first store in Ukraine in a city store format in 2019. The object should have been opened in Ocean Mall in Kyiv.

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NOVA POSHTA GROUP SIGNS FIVE-YEAR CONTRACT WITH IKEA

NP Logistic, part of the Nova Poshta Group, has signed a contract on the provision of logistic services to the Swedish furniture and home accessories retailer IKEA, planning to open its first store in Ukraine in 2019.
The press service of Nova Poshta reported on Wednesday that the company will provide storage and order completion services for the first IKEA city store in Kyiv.
“We are glad that IKEA selected us. This would allow uniting prime standards of fulfillment and delivery with the furniture retail,” the co-owner of Nova Poshta, Viacheslav Klymov, said.
NP Logistic’s core business is fulfillment: storage of goods at warehouses, online order completion and delivering them to customers.
As reported, in September 2018, IKEA officially announced that the group plans to open a first city store in Ukraine in 2019 in the Ocean Mall in Kyiv.
The development of the network in Ukraine will be under the aegis of IKEA Southeast Europe, which is part of the IKEA Group (Ingka Holding B.V.). The company is engaged in retail business IKEA in Croatia, Serbia, Romania and Slovenia.
Swedish IKEA is the world’s largest retail chains for furniture and household goods with 367 stores on 30 markets.
Nova Poshta was founded in 2001. Its network has more than 2,350 depots and a fleet of more than 3,600 trucks. In 2017, more than 145 million items were delivered.

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LARGE IKEA STORES COULD BE OPENED IN KYIV IN THE FUTURE

Sweden’s IKEA company, the largest furniture and household goods retailer in the world, plans to open stores in Ukraine, including large ones (30,00 square meters) in the future shopping and entertainment centers of Mandarin Plaza, the founder of the company Vagif Aliyev has said. “We have been negotiating with H&M and with IKEA for 16 years… After [the store with an area of] 5,000 square meters [the opening in the Ocean Mall shopping center of which is scheduled for the end of 2019], we will open IKEA [stores with an area of] 30,000 square meters throughout Kyiv in our large shopping and entertainment centers,” Aliyev, who creates a network of 10 shopping and entertainment centers, said at a press conference in Kyiv on Wednesday.
According to him, after the construction of the Ocean Mall shopping center and the Blockbuster Mall shopping center is completed, the developer intends to start implementing the Lesnaya shopping mall (opening in 2020) and the Hippodrome (Yuzhny) shopping and entertainment center, where IKEA can also be opened.
Aliyev said that three or four stores of the Swedish retailer in his mall will have 5,000-7,000 square meters, another three – 30,000 square meters. At the same time, he said that IKEA will not be opened at the Lavina Mall shopping center and the Blockbuster Mall shopping center.
In turn, the representative of IKEA South-East Europe Vladyslav Lalich neither confirmed nor refuted the words of the developer, saying only that the company “really plans to stay in Ukraine for a long time, but develop step by step.”
“We want to combine the opening ceremony of our first IKEA store with the opening of the Ocean Mall shopping center at the end of summer next year. At the time of opening, the store will have 3,600 SKU (product names), but their number will double in half a year,” Lalich said.

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