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Jakarta Post

IKEA extends reach with new Surabaya ‘distribution point’

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, October 11, 2017   /   03:23 pm
IKEA extends reach with new Surabaya ‘distribution point’ People walk outside the Europe's biggest Ikea store in Kungens Kurva, south-west of Stockholm on March 30, 2016. Ikea founder Ingvar Kamprad, who built a global business empire with revolutionary flat-pack furniture and dallied with Nazism in his youth, turned 90 today. (Agence France -Presse/Jonathan Nackstrand)

Swedish furniture giant IKEA has opened an e-commerce distribution center in the East Java capital of Surabaya to extend its customer reach, Antara reported on Tuesday.

Customers can now buy IKEA products online and pick up their items from the distribution point, located at Giant Ekstra supermarket on Jl. Diponegoro.

"We see a high potential for demand from Surabayan customers, so we decided to locate a distribution point there to bring us closer to our customers," said IKEA Indonesia country marketing manager Eliza Fazia, as quoted in the Antara report.

Eliza said that initial response to the distribution point had been great, with at least 500 customers placing orders during its first week of operation.

She said that the condition mirrored what happened at IKEA's flagship store in Alam Sutera, Tangerang, which sees about 2 million customers visit the outlet every year.

PT HERO Supermarket, the Indonesian franchisee for Swedish furniture giant, had earlier opened three e-commerce distribution points for its flagship store, in addition to the existing one in Sentul, Bogor.

The group also plans to open a second IKEA store within the next few years at Jakarta Garden City, East Jakarta, where it purchased the site last year from PT Modernland Realty.