Ikea signs deal to open first New Zealand store at Auckland's Sylvia Park

Thursday, 2 December 2021

Ikea is planning to open its first New Zealand store in December 2024. (File photo)

Ikea New Zealand has signed a deal to buy 3.2 hectares of land for a store at Auckland’s Sylvia Park shopping mall.

Ikea signed the conditional sale and purchase agreement with Sylvia Park owner Kiwi Property Group on Tuesday.

Ikea New Zealand chief executive Mirja Viinanen said while the Covid-19 pandemic had presented unforeseen challenges and developments, the intention had always been for it to enter the New Zealand market “in a good way”.

“This has included identifying the best locations for future stores and customer meeting points,” Viinanen said.

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Kiwi Property Group’s retail experience enabled Ikea to be brought to New Zealanders “in the best way possible”, she said.

As well as the physical store, it would also offer online shopping and delivery across New Zealand, she said.

The Scandinavian chain is the world’s largest home furnishing retailer with more than 400 stores in 50 countries.

New Zealanders have only been able to get their hands on the flat-pack furniture items through importers.

Sylvia Park attracts more than 11 million shoppers annually.

The move to open in New Zealand has been on the cards for Ikea since the country was added to its annual study of home life habits in 2018.

In January 2019, Ikea announced plans for a store in Auckland and expected to create up to 400 jobs.

An update in February 2020 outlined plans for a full-sized Ikea store in the greater Auckland area, as well as a planning studio in Wellington and a second smaller-format store in Christchurch.

Ikea said that as it was finalising its plans for how it enters the New Zealand market, the brand could not comment on its expansion just yet.

Kiwi Property Group chief executive Clive Mackenzie said having Ikea at Sylvia Park would attract customers from around the country.

New Zealand’s biggest mall in the Auckland suburb of Mt Wellington already attracts more than 11 million shoppers annually.

The mall opened in 2007 and now has more than 200 stores and 4000 car parks across 106,427 square metres.

Some of its stores are exclusive to the mall in New Zealand, including Spanish fashion chain Zara and the recently opened Culture Kings and JD Sports.