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Author Topic: WTH!!!! IKEA left Egypt??
Liar_Lanie
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http://answers.yahoo.com/question/index?qid=20070809084006AAaAU2V


Zoser

well ,go to any ikea site and you will find online catalogues for furnture (choose any ikea country web site )
http://www.ikea.com/

to Sabrina: there was Ikea in Egypt for a while, it did not work as it was expensive for the Egyptians, Ikea is cheap in Europe as the workmanship is expensive there, and Ikea designs depend on (make yourself)...in egypt workmanship is cheap,, so it was not workable there


sabrina

one of the most popular furniture stores in England is ikea, very popular with young people, its Swedish, not at all in the Egyptian style though but very modern and you might like to see what there is. its very economic and stylish both my kids have used this store in the last year to furnish their new houses.
http://www.ikea.com/gb/en/


Cripes this is my favorite store. I adore the place.

Why couldn't you expats keep this place going? I really wanted this store in Egypt. Here its just one train ride and that allows me to work out a shopping list and get some reading done.

WTH????

Did anyone do some actual shopping here before IKEA abandoned Egypt?

I have to admit the swedes and norges they bring in to work in the MOA location need to have a personality transplant, but I love the store.

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HandsUpHandsDown
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Sucks, though I can see their point. I love IKEA.
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daria1975
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That's sad. I like Ikea too.
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WTH, Sono, do you homework better. [Roll Eyes]


October 2005

Carpet Bombing

There may not be an IKEA in Egypt for a while, but Oriental Weavers is coming closer to conquering the rug market in the rest of the world through the Big Blue Emprie.

By Najla Moussa

Newlyweds can put their allen wrenches away and roll down their sleeves: Despite persistent rumors to the contrary, Swedish home furnishing giant IKEA will not be opening its doors in Egypt any day soon.

IKEA Country Manager Henrik Osterstrom explains that “IKEA will not be opening a retail store in Egypt in the near future However, a feasibility study is currently underway to determine the possibility of opening a franchise in the country.”

The low-cost, do-it-yourself furnishing retailer has been present behind the scenes in Egypt since 2003, however, scouting for local talent to supply products for its global supply chain. To keep costs down for both the customer and the company, IKEA subcontracts suppliers in nations with low labor costs that are in close proximity to raw materials, can maintain IKEA’s stringent quality standards and have ready access to the company’s distribution channels, mainly through Europe.

IKEA’s Egypt purchasing office, the only one of its kind in Africa, has become a 40 million source of business for local manufacturers.

“Our purchase value has doubled in one year, from 20 million to 40 million this year alone,” says Senior Business Developer Staffen Bonnevier.

The office currently has eight active suppliers in its pipeline: Oriental Weavers, MAC, MOBICA, Kandil, GMG, Lesico, Nile Metallic and Agrolink. Using primarily textiles, float glass, ceramics and metal, the suppliers manufacture products including carpets, sinks, tables, shelves, kitchen doors and partitions for IKEA stores. None of the items are sold in Egypt and all the products are manufactured at the suppliers’ own production plants.

“Our most successful item is the carpets,” says Bonnevier. “We are also looking for the right suppliers for cotton products, but you have to understand, there is strong competition from countries in Asia.”

Oriental Weavers (bt100 number 12) has been manufacturing carpets for IKEA for nearly three years. In the early phases of the relationship, Oriental Weavers manufactured strictly according to IKEA designs, supplying IKEA with 50% of the carpets it sells worldwide. Currently, 80% of those carpets are produced according to IKEA designs, and 20% are the result of design collaboration between the two companies.

According to OW export manager Ashraf Atty, business with IKEA is booming. He cites 10 million in IKEA revenue for 2005, adding that, “the forecast for 2006 is 270% of 2005,” or 27 million.

Atty predicts that in the next year OW will more evenly split its production between ‘oriental’-style designs that draw on OW’s experience and the more modern designs that IKEA commissions.

“When you get into business with IKEA, it’s long term,” says Osterstrom. “We are here to promote Egyptian suppliers and the industry, and that takes time. We came to Egypt because we saw big potential in the country. There are enough strong suppliers, the country has a lot of quality raw materials, its proximity to our retail market, and the good labor and freight costs are all great advantages.”

When entering a new market, IKEA likes to first establish local suppliers and absorb their advice on local political, legal, cultural and financial issues, according to Osterstrom.

As for prospects for a retail storefront?

“The country still has high custom duties,” he concludes. “Also, opening a retail store means importing furniture, which is expensive. However, a 200% growth index is a positive indicator for a future franchise.” bt


http://www.businesstodayegypt.com/article.aspx?ArticleID=5985

October 2005


****


Al Futtaim seeks to double retail value


By Robert Ditcham, Staff Reporter
Published: February 09, 2007, 00:00


...

The company is preparing an aggressive Dh250 million investment plan for new outlets of Swedish home-furnishings brand Ikea in Qatar, Oman, Egypt and Dubai over the next three to five years years, said Jim McCallum, group director, retail, at Al-Futtaim.

"We have the territorial rights for Qatar and Oman and are presently working on the practicality of entering the Egyptian market," he told Gulf News.

"Qatar will open in the next two years, but Egypt is harder owing to possible obstacles over import regulations."..."

http://archive.gulfnews.com/articles/07/02/09/10102989.html

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Penny
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I would just love to see an Egyptian male trying to put together one of those IKEA packs, sorry but just the thought has me laughing [Big Grin]
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samaka
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quote:
Originally posted by Penny:
I would just love to see an Egyptian male trying to put together one of those IKEA packs, sorry but just the thought has me laughing [Big Grin]

[Big Grin] [Big Grin] [Big Grin]
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Questionmarks
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Dear xxxxxxxxxxxxxxxxxx

We thank you for your interest in IKEA products and the IKEA Retail System and your interest in acquiring the IKEA franchise for Egypt.

We would like to inform you that at this point of time we have progressed quite far in the negotiations with a potential partner regarding the franchise for Egypt. If the negotiations are successful, our Franchisee will be granted the master franchise for this market.



Trusting you understand our position, we remain,



Yours faithfully,

Inter IKEA Systems B.V.



xxxxxxxxxxxxxxxxxxxxxxxx










--------------------------------------------------------------------------------
From: xxxxxxxxxxxxxxxxxxxxxx
Sent: 09 February 2006 12:04
To: Franchise
Subject: Request,xxxxxxxxxxxxxxxxxxx


Names are deleted, as you can see in february 2006 Ikea stated to are in negotiation...
I know where the shop would come, but I have no info if indeed it has been opened ( and closed again)

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“Out beyond ideas of wrongdoing and rightdoing, there is a field. I will meet you there.”

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cloudberry
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quote:
Originally posted by ?????:

From: xxxxxxxxxxxxxxxxxxxxxx
Sent: 09 February 2006 12:04
To: Franchise
Subject: Request,xxxxxxxxxxxxxxxxxxx


Names are deleted, as you can see in february 2006 Ikea stated to are in negotiation...
I know where the shop would come, but I have no info if indeed it has been opened ( and closed again)

It is highly unlikely so much would have happened in only about 2 years. Even in Europe it takes a long time setting up a business like this.
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Questionmarks
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Well, about Egypt, nothing surprises me anymore!
But this is what I know about it. I've been visiting the place where the new Ikea should have been builded in 2007, and there was nothing at that time, never heard about it anymore...

--------------------
“Out beyond ideas of wrongdoing and rightdoing, there is a field. I will meet you there.”

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Liar_Lanie
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What I don't understand is that 2 Egyptian usernames on yahoo answers in 2007 stated that I was opened and closed.

I have seen products in IKEA with the "Made in Egypt" label.

Many of the news articles pertaining to the opening of an IKEA in Egypt are from 2003 and 2005, little news from 2006 onward.

--------------------
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Al-Futtaim would be the best place to contact for more info!!

http://www.al-futtaim.com/content/mainfull.asp?sessionID=1109F77D-A1DE-474F-91FE-03CA811ECF90

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Questionmarks
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Ikea has 'made in Egypt products' for ages, but there has not been an Ikea-store there before february 2006, when parties were negotiating. I can't remember which time I was on that place where the shop should have been build, anyway it was after 02-2006 and not in the last half of 2007...
I also didn't hear about an opening or closure...

--------------------
“Out beyond ideas of wrongdoing and rightdoing, there is a field. I will meet you there.”

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