IKEA planning a smaller store in Chiang Mai as part of expansion
The furniture giant’s fifth store in Thailand is expected to open in 2025
IKEA, the giant furniture and home décor brand from Sweden, is planning to open a new branch in Chiang Mai – a smaller store, similar to its Phuket model – according to reports.
The new Chiang Mai branch is expected to officially launch in 2025, making it IKEA's fifth store in Thailand.
There are also rumours of IKEA exploring the possibility of opening a new branch in Rangsit, a location where the company already owns land.
Leonie Hoskin, retail manager of IKEA Thailand and Vietnam, had earlier noted that the furniture giant was interested in expanding into several cities in Thailand, with Chiang Mai being a key location with strong potential for further growth in the northern region. Rangsit is also of interest.
IKEA has been in business for nearly 80 years and entered the Thai market 12 years ago. It currently operates four branches – in Bangna, Phuket, Bangyai, and Sukhumvit. IKEA’s strong performance in Thailand aligns with its plans to expand its presence in the country.
Ikano Retail, the franchise holder for IKEA in Thailand, Malaysia, Singapore, Mexico, and the Philippines, reported revenue of approximately 40 billion baht for fiscal year 2024 (September 2023 - August 2024), reflecting a 1.3% growth over the previous year.
In Thailand, the company announced a major price reduction in 2024 for over 2,400 products, 85% of which are essential or best-selling items, along with reduced transportation fees for truck deliveries.
In Thailand, IKEA generated over 10 billion baht in revenue in 2024, representing a 3.9% growth compared to the previous year. This marks the highest growth rate among its regional operations.
Summary of IKEA’s regional performance:
Singapore (3 branches): THB9.1 billion, up 0.6%
Malaysia (4 branches): THB11 billion, down 4.2%
Thailand (4 branches): over THB10 billion, up 3.9%
IKEA Thailand opened its first branch in Bangna in 2011, with 44,000 square metres of floor space, 9,873 products and about 450 employees.
The second branch in Phuket opened in 2015, covering 2,198sqm, with the same product selection as Bangna and around 23 employees.
The Bangyai branch, the biggest in Thailand covering 50,278sqm, opened in 2017 with 9,864 products and around 450 employees.
The Sukhumvit branch opened on December 1, 2023, covering 12,000sqm, with approximately 180 employees. In its first week, it attracted 120,000 visitors.
