FREE Market Commentary: IKEA Might Build “World’s Largest” Store in the Philippines

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Market Issue or Event

IKEA Reveals Big Plans for Philippines

IKEA has lined up “big” plans for the Philippines which includes possibly the largest IKEA store in the world. The first IKEA store in the Philippines which will open within the next 3 years is supposed to be bigger than the IKEA store in Korea, currently its largest store globally at roughly 60,000 sqm. The company plans to open 4-6 stores of different formats for the Philippines in the next 5-10 years.

 

Our Partner Broker’s View and Commentary

Previously, we thought that the entry of IKEA in the Philippine market would negatively affect the demand for companies involved in home improvement retailing like Wilcon Depot Inc. (WLCON); however, this may not be the case.

In our last meeting, WLCON said it would not be a concern since IKEA’s business is geared towards furnitures and fixtures. This segment only accounts for 2% of WLCON’s sales. We also note that IKEA’s entry could also help boost growth of the home retail and improvement industry in the country.

 

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AP Securities (formerly Angping & Associates Securities)
AP Securities (formerly Angping & Associates Securities)

AP Securities (formerly Angping & Associates Securities) is one of PinoyInvestor’s partners in delivering superior and reliable stock research reports that help Filipino investors make smart stock investing decisions! Learn more about them here.