Financial Diary – Santiago
Four years after its debut in the country, Ikea has been adjusting its strategy in Chile, Colombia and Peru, the three markets operated under the franchise of Falabella.
The original plan of the world’s largest furniture retailer called for opening nine stores over a 10-year horizon. To date, the company has five stores in the region and two e-commerce channels.
Although more than half of the plan has been fulfilled, in Chile there have been no new openings since 2022, while in Colombia the last expansion cycle was concentrated between 2023 and 2024. On the other hand, in Peru there is still no news and neither of the third store on national soil.
When asked about future openings, from Ikea They indicated that these “will be carefully evaluated and announced in a timely manner.”
For analysts, everything indicates that its entry has been more challenging than expected.
The adjunct professor of the Department of Industrial Engineering of the University of Chile and managing partner of CIS Consultants, Claudio Pizarropointed out that the roadmap was not breached, but rather underwent a recalibration, privileging an asset-light model, complemented by the strength of the digital channel. “Four years after its debut, the expansion plan reduced the opening of square meters towards asset optimization and digital scalability,” he said.
For Pizarrothe slow opening of stores in Chile responds directly to the financial restructuring of the franchised operator. On this point he explained that opening a standard store Ikea demand over US$40 million. “In a context of moderate discretionary consumption and construction inflation, opening more m2 implied a greater risk, considering the strong presence of Homecenter Sodimac in Chile,” he added.
The other key points for the analyst is that Falabella’s strategic priority between 2023 and 2025 was financial deleveraging and cash protection, restricting large investments in physical retail, and the reallocation of capital to markets with greater growth margin. That is why it has prioritized expanding in Colombia – a market with less presence and penetration of large home formats – while freezing construction in Chile and Peru.
