Ikea UAE, part of Al-Futtaim group of companies, said that its new store on Yas Island in Abu Dhabi will be the biggest ever in Mena and will provide a strong impetus for expanding into Oman and Qatar.

The Sweden-based leading furniture and furnishing company also said the  29,642 sq m store expects to serve nearly 1.3 million visitors in the first year of operations when opens for business in December 2010 on Yas Island.

The gigantic store will form part of Yas Island’s retail centre, based around Yas Mall, which will accommodate a mix of retailers.

"Our business continues to grow in the Middle East even in the present economic environment,” said Franicevic.

“This is proof of the strength of the Ikea brand in this part of the world and the intense loyalty of our customers. We expect around 1.3 million visitors to the Yas Island store in the first year of operations with more than 60 per cent of them being cash customers," he added.

Franicevic’s positive outlook comes close on the heels of Ikea reporting record global earnings of 21.5 billion euros ($31.7 billion) for the period September 2008 to August 2009.

Ikea on Yas Island will have 1,563 parking bays for its visitors who will be served by 26 cash tills at the back of a total sales area of 18,100 sq m.

Alongside home accessories (6,000 sq m) and showroom furniture (6,150 sq m) areas, there will also be a 600-seat, 2,100 sq m restaurant serving popular Swedish delicacies as well as its healthy and affordable breakfast and lunches.

Franicevic also said that the size of the store was an important factor in enabling Ikea to keep its prices low.

"The Ikea vision is to offer a wide range of home furnishings of good design and function at prices so low that the majority of people can afford to buy them," he said.

"Ikea achieves this through clever product design, cost effective manufacturing, buying in bulk and transporting in flat packs; and also by asking the customer to do some of the work themselves: they select their own furniture, collect it from a massive self-serve warehouse, take it home with them and then assemble it themselves. The big stores are an important part of making this concept work,” Franicevic concluded. – TradeArabia News Service