Expanding in the U.S., Swedish Retailer IKEA to Grow Western Presence with Plans for Utah Store in City of Draper; Ikea Draper, to Open in Spring 2007, Will Be 1st IKEA Store in Mountain West

Business Wire, Nov 29, 2005

PLYMOUTH MEETING, Pa. -- IKEA, the world's leading home furnishings retailer, today announced plans for a store in Draper, UT, increasing the Swedish retailer's presence in the Western U.S. (In addition to stores in Arizona, California, and Washington, a future store is planned in Portland, OR.) Pending permits, construction of the future IKEA Draper can begin next spring, with an anticipated opening in Spring 2007.

As part of a 40-acre project, the approximately 310,000 square-foot future IKEA Draper and its approximately 1,300 parking spaces will be built on 22.5 acres at the northwestern corner of I-15 and Bangerter Highway, and will reflect the same unique architectural design for which IKEA stores are known worldwide. In addition, IKEA will be selling approximately 13 acres that will be available for complementary retail and restaurant uses.

"We are thrilled about entering Utah at this site in Draper where we can build on our presence in other Western states," said Doug Greenholz, IKEA real estate manager. "We know IKEA Draper will allow us to be more convenient to existing customers while also introducing the unique IKEA family-friendly shopping experience to new customers throughout Utah. Plus, with the additional retail parcels to be developed, we are confident a strong retail destination will emerge here in Draper."

Besides nearly 10,000 exclusively designed items, IKEA Draper will feature three model homes, 50 room settings, a supervised children's play area, as well as a 300-seat restaurant serving Swedish specialties such as meatballs with lingonberries and salmon plates, as well as American dishes. Other family-friendly features will include a "Children's IKEA" area in the showroom, baby care rooms, preferred parking and play areas throughout the store.

In addition to jobs created during the construction phase, approximately 300-350 coworkers would join the IKEA family when the new store opens. IKEA Draper will provide significant annual sales and property tax revenue for local governments and schools. "We also look forward to being a partner in the local community," continued Greenholz.

IKEA currently has more than 225 stores in 33 countries, including 26 in the U.S., where it plans to open approximately four or five stores a year. Other stores are being planned in: Brooklyn, NY; Canton, MI; Dublin, CA; Portland, OR; Round Rock, TX; Somerville, MA; and West Sacramento, CA.

Since its 1943 founding in Sweden, IKEA has offered home furnishings and accessories of good design and function, at low prices so the majority of the people can afford them. For three consecutive years, IKEA has been named to Working Mother magazine's annual list of the "100 Best Companies for Working Mothers" and Training magazine's annual "Top 100" ranking of companies that excel at human capital development -- as well as to this year's FORTUNE's "100 Best Companies to Work For" list. IKEA incorporates environmentally friendly efforts into day-to-day business and continuously supports initiatives that benefit causes such as children and the environment. To visit the IKEA Web site, please go to http://www.ikea-usa.com. For information about working at IKEA, please visit http://JobsAt.IKEA-usa.com.