IKEA: 2nd Israel store will be biggest in Mideast
Company exhibits new Rishon Lezion store, measuring 34,000 square meters in size, which will open March 9. Revenue expected to total NIS 3 billion within three years, CEO says
The size of the store in the Maayan Soreq area, which was exhibited on Tuesday, is 34,000 square meters (about 366,000 square feet) with 2 kilometers (1.2 miles) separating one end of the store from the other.
IKEA Israel Chairman Ron Hadassi declared that "within three years, the chain's revenues will reach NIS 1 billon (about $260 million) a year."
IKEA CEO Shlomi Gabbai estimated that the store's target audience would comprise of the 600,000 residents living in the area and that together with other buyers, the store will have about two million visitors and its revenue would reach about NIS 310 million ($82 million). He added that the inventory rate in both Israel stores will not fall under 96%.
The new store will have 46 showrooms, most of which are already standing. Some 1,400 parking spots, seven elevators, three escalators and wheelchairs will be available for the visitors.
The store will include Israel's biggest restaurant with 500 seats, where some 2,900 people are expected to dine daily, in addition to a hotdog stand and the world's first falafel stand. The price: NIS 5 (about $1.30) per portion.
Kitchen prices may go down
According to IKEA, one of the store's biggest innovations is a kitchen planning stand, which will give buyers the option to plan their kitchen on their own. "This is a much more efficient solution, which will allow us to serve more people at the same time," Gabbai explained.
"There will be eight to 12 stands, which will ease the burden on the three to four designers available to serve the public."
Will it reduce the kitchen prices?
"No, because we've never charged money for planning."
So why would someone plan on their own if you offer designers without an extra fee?
"Because it becomes much simpler and easier. People will be able to do it at home, in the family circle, it will shorten the time needed to plan the kitchen and the store and will offer an experience for the entire family. It will also shorten the queues to the designers.
"If this strikes roots in Israel, and more kitchens are bought thanks to the quickness of this service, we will drop process. If we intensify our volumes, we will be able to reduce prices."
What about online reservations? When will that finally become possible?
"Not now. After we open three stores and after we assimilate all the knowledge there is to assimilate, then perhaps we will turn to online sales. At the moment, there is no reason for going to internet sales. We need the people here, for the experience."
