IKEA's shopping malls business Ingka Centres opened a mixed-use project in Shanghai on Friday, costing over 8 billion yuan (€1.02 billion) and representing the group's largest single investment in China.
Shanghai Livat, in downtown Changning District, includes the city's fourth IKEA store, over 300 branded shopping-mall tenants, five office buildings and community facilities - including a treehouse playground and 'Scandi Village' in a nod to the group's Swedish heritage.
Consumer Confidence
The world's second-biggest economy has been struggling for growth, particularly in retail where consumer confidence is low.
However, challenging environments present opportunities for firms willing to continue to invest and evolve, said Cindy Anderson, managing director of Ingka Centres.
"It is not the time to lean back and do what you always did, it's really important to lean forward now and develop the offer," she said.
This type of mixed-use development has an advantage over traditional retail models because they are community-led rather than commerce-led, Anderson said.
India Expansion
"Specifically in China ... having space for the community, that note of joy, playfulness, we know that's really important for the Chinese customer," she said.
Revenue from developments in China, which number 10 with the addition of Livat Shanghai, are set to grow by double-digit percentages this year, Anderson said.
India is another pillar of growth for Ingka Centres with two properties near Delhi set to open in 2026 and 2028 respectively, she said.
The centres name is derived from Ikea founder, Ingvar Kamprad, who first started a small company in the 1940s in Småland, southern Sweden, which is still open today.
Addition reporting from ESM
