Ikea – fiscal stimulus or predatory giant?
John Collins
Ikea finally opened its doors in Ballymum this morning after years of, in my opinion, over the top media attention and speculation. Apparrently about 3,000 people passed through the doors during the first two hours of trading at the Swedish home furnishings giant. That’s pretty respectable in the teeth of a recession. Of course if they had opened at the height of the Celtic Tiger, as they hoped to do, the scences would probably have been similar to the chaotic opening in Edmonton, North London in 2005 which saw five people hospitalised and the store closed after 30 minutes.
The possible economic impact of Ikea on an already decimated furniture sector will be watched closely. Gerry Harvey, the Aussie businessman behind Harvey Norman, has been telling anyone who will listen about how his 14 Irish stores are hemorrhaging money, while high profile stores and chains such as Habitat, Arramount, Land of Leather, Classic Furniture and Jim Langan have got into trouble or ceased trading.
Luckily Irish entrepreneurs are seeing the potential in the arrival of the kings of the flatpack. If you don’t like allen keys and confusing intructions take your choice between any number of out of work carpenters and handymen who will do the task for you such as FlatpackUnpack.ie and Notboxes. Personally my favourite is the slightly crudely named Simple Assembly Me Hole.

4:07 pm
Maybe the media attention is over the top, however the opening of such a major international store in a country which is severly depressed by such a huge economic slowdown can’t be a bad thing! Also, the effect this is having on the small businesses which offer flatpack assembly services is encouraging. Let’s hope IKEA keep up their successful start.
Comment by Franchise Direct