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Ikea Weighs Phuket Move to a Store of 10,000 to 12,000 Square Meters

Leonie Hoskin said the move remains tentative, with a target opening around 2029. Online sales account for 26% to 30% of total sales.

Updated 2 min read
Shoppers compare furniture finishes inside a compact home-furnishings showroom in Phuket, Thailand. / EconoTimes.ai
Shoppers compare furniture finishes inside a compact home-furnishings showroom in Phuket, Thailand. / EconoTimes.ai

Ikea Thailand is considering a larger Phuket store as it uses smaller outlets to reach new areas and preserve the option of adding bigger formats later.

In remarks to the Bangkok Post, Ikea Thailand and Vietnam retail business manager Leonie Hoskin said the company is considering a Phuket site of 10,000 to 12,000 square meters, with a tentative opening target around 2029. The proposal has not been finalized. Ikea has operated in Phuket for about 10 years, Hoskin said.

She said Ikea's smaller stores in Chiang Mai, Khon Kaen and Phuket cover 700, 800 and 2,000 square meters, respectively. A medium-sized branch in Bangkok's Sukhumvit area spans 12,000 square meters, while the flagship outlets at Megabangna and Bang Yai each cover 25,000 square meters, she said. Hoskin said large-format stores need more time and investment to develop; the smaller format offers a way into new areas, with larger outlets a possible later step.

That approach carries fulfillment costs. Hoskin said the smaller locations generally do not have warehouses, leaving them reliant on logistics and order-fulfillment services that can raise operating expenses. Large furniture deliveries can also reduce the number of carriers available and leave goods vulnerable to transit damage.

Hoskin said Ikea plans to offer a Thailand Post arrangement where customers can collect orders at designated points for less. She put e-commerce at 26% to 30% of sales and said it is expected to grow. Hoskin said physical stores serve shoppers who want to check a product's color or model before buying online, and offer room-planning help and inspiration.

Hoskin said Ikea also wants to open another store within one or two years, but provided no details. The company has land in Rangsit that could be used for a third Bangkok store or a nationwide fulfillment center, though either project is likely years away, she said.

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