Three years after its debut in Chile, IKEA is consolidating its position as a success story in South America. Its stores in Chile have been the fastest-growing in the world for two consecutive years, driving foreign investment and retail innovation.
In August 2022, the Falabella Group introduced the renowned Swedish furniture and home decor chain IKEA to Chile through a franchise.
It did so at a challenging time: consumer spending in the country was slowing down. However, the model has consolidated and is now setting international records.
According to Radio Bio-Bio, three years after opening, Chilean stores have experienced more growth than other IKEA locations worldwide for two consecutive years.
Three years of expansion and consolidation
The first store was at Open Kennedy, a mall that Parque Arauco acquired from Falabella this year for some US$173 million.
IKEA Plaza Oeste opened in December 2022 with a layout similar to the Swedish chain’s traditional design. The same year, the Parque Arauco Oriente store ranked among IKEA’s top five small stores worldwide.
In a statement, the brand reported that store visits in Chile have doubled over the past three years, an indicator of strong public interest in the brand’s value model.
Digital innovation: e-commerce on the rise
Growth is not limited to physical stores. IKEA Chile’s e-commerce platform has achieved a penetration rate higher than the company’s global average.
In fact, at events like Cyber, IKEA has managed to double its sales year over year, demonstrating that its digital strategy resonates with a consumer increasingly used to shopping online.
Regional expansion with a Chilean hallmark
IKEA’s success in Chile is complemented by its performance in Colombia, also franchised through the Falabella Group, where sales growth remains in double digits.
The online channel, the two stores in Chile and the three in Colombia have received a total of over 80 million visits in just three years, a figure that confirms their strategic success.
Falabella: diversification and new opportunities
The Falabella Group, comprising Falabella Retail, Banco Falabella, Sodimac, Tottus, Mallplaza and the IKEA franchise, has demonstrated its ability to diversify and adapt to emerging global trends.
The group also made progress in other deals, including the recent agreement to sell its stake in the Juan Valdez franchise in Chile to Copec. The National Economic Prosecutor’s Office (FNE) approved the transaction in August, after confirming that it would not impact competition in the local coffee market.
The IKEA case confirms that Chile remains an appealing and active market for investment, even during periods of slowed consumption.
The company’s rapid consolidation in the country reaffirms Chile’s status as a regional hub for retail and e-commerce. In this market, foreign companies find consistent growth and long-term prospects.
Are you interested in investing in Chile? Learn more about the business opportunities available in Chile at www.investchile.gob.cl or contact us.
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