IKEA selling out?

J D Sauser

Silver
Nov 20, 2004
2,940
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www.hispanosuizainvest.com
IKEA is apparently having a big sale... sounds like "everything must go".
An IKEA worker told my GF they were going to close the store.

Another multi Million Dollar investment gobbled up in Dominican quick sand?

If true, I think I did post some thoughts about my doubts that the Dominican society would bite into "assembling" furniture back in the days (what, 4 years ago?) when the rumor popped up Ikea would come to this island. Would just that be the problem, or is it just another company who's had to find out that big investments (dumping money ON the island) was welcome, but doing business here there after was not so much?

... J-D.
 
Dec 26, 2011
8,071
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I have a theory. Assuming there's truth to the rumor about the SD store, perhaps they're targeting foreigners, with whom they have an established reputation, in the opening of the new stores in zones of tourism?

I too find it hard to believe that the average Dominican would be up for assembling their own furniture.

All the comments I've heard from Dominicans about IKEA have been negative. "Overpriced" and of "poor quality". Neither claim is true but Dominicans are great at parroting what they've been told without personal knowledge of the subject. I love the dining room table and chairs I bought at IKEA and put together years ago. But I'm a gringo.
 
May 29, 2006
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IKEA Job Interview:

ikea_job_interview.jpg
 

windeguy

Platinum
Jul 10, 2004
42,211
5,966
113
Say it isn't so. Must be because I never purchased anything from them ever in my life. The first Dominican IKEA store opened 17 February 2010 in Santo Domingo. The first in Latin America. Seemed like a mistake when they did it. If they are closing they lasted about as long as I expected, but let's make sure on that. PICHARDO must have the "inside" scoop on this.
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
IKEA is apparently having a big sale... sounds like "everything must go".
An IKEA worker told my GF they were going to close the store.

Another multi Million Dollar investment gobbled up in Dominican quick sand?

If true, I think I did post some thoughts about my doubts that the Dominican society would bite into "assembling" furniture back in the days (what, 4 years ago?) when the rumor popped up Ikea would come to this island. Would just that be the problem, or is it just another company who's had to find out that big investments (dumping money ON the island) was welcome, but doing business here there after was not so much?

... J-D.



1238409599_nom_nom.gif
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
I have a theory. Assuming there's truth to the rumor about the SD store, perhaps they're targeting foreigners, with whom they have an established reputation, in the opening of the new stores in zones of tourism?

I too find it hard to believe that the average Dominican would be up for assembling their own furniture.

All the comments I've heard from Dominicans about IKEA have been negative. "Overpriced" and of "poor quality". Neither claim is true but Dominicans are great at parroting what they've been told without personal knowledge of the subject. I love the dining room table and chairs I bought at IKEA and put together years ago. But I'm a gringo.



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TStroman3

New member
Sep 11, 2011
114
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0
They have the same kind of sales here in the US every June- the reason being, the new catolog with all of the new items for 2012-2013 comes out in July. It may be that they are following the same system there they do here-
 

Zulu

New member
May 27, 2012
106
1
0
I don't think they are going under i just think that they are restructuring it could also be a method to pull in more customers have you ever seen the stores back in the U.S that have a sign that reads "going out of business sale, everything must go," the only problem is that store never closes up shop, matter of fact the store is 6 years running. & in the end everyone want's a good deal thinking a blow out sale is the answer. As it being the first in Latin America, personally i think wrong place to set up shop i would have opened one in Brazil.
 

Mauricio

Gold
Nov 18, 2002
5,607
7
38
This story seems to be wishful thinking. Ikea is here to stay, the store in SD (a small store in Ikea terms is of the ones owned by the particular franchise taker the most profitable one.

What I hear here a lot that there are never cars on the parking lot and/or people in the store is not a reason to say they are not profitable. In Holland these stores are the same during the week you see hardly people there. Besides the operation in DR is cheap compared to for example Europe and the prices are on average 60% higher.

Lastly, why would they invest millions of dollars and 'give up' when at the other side of the street two big traffic generating malls and a metro station are almost being inaugurated.
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
?Ahora puedes comprar en B?varo!

?Nos encontrar?s aqu?!



Direcci?n:
San Juan Shopping Center, Carretera Barcel? km. 9, B?varo, La Altagracia.
Rep?blica Dominicana.
Tel?fono:
1 809 472 1000
Correo electr?nico de servicio al cliente:
telepedidos.sdq@ikea.com.do
Horario:
Lunes a Domingo de 10:00 a.m. a 8:00 p.m.




mapa_punto_bavaro.jpg




They are doing sooooooo bad that they needed to open a new chinchorro where to put their biz in the DR to save money on rent! Oh! Wait! They don't pay rent!

I guess to save on property taxes! Oh! Wait! They are enjoying tax incentives from the Leonel gov that got them to select the DR as their first store into the Latin American market! Darned be Mexico, Brazil, Argentina, Chile, et all...

I guess people are not coming to the largely empty store in SD with all those unused parking spaces gathering dust! Oh! Wait! They just out-scored next door Americana in clients served for the year, the one that received over 1 million clients until last Dec 31 2011...

I guess it's the high operating costs and low margin of profits compared to other stores that size in the world for Ikea that makes it not rentable? Oh! Wait! The operating costs for Ikea in the DR are 40% lower than any of their other stores around the world, the margins of profit in the DR market are like crazy Eddie used to say "Insane"!

Ikea is doing so bad in the DR that they need to hire some more temporary people to handle the extra clients just for their specials during the year... Imagine that!

Yup! Very bad indeed!
 

suarezn

Gold
Feb 3, 2002
5,823
290
0
55
I doubt they would close, but the place has been pretty empty the last two times I've been there. Hardly ever see anyone coming out with shopping carts full of stuff...but I'm sure they're still doing fine, because of their operating costs and huge markups.
 

LTSteve

Gold
Jul 9, 2010
5,449
23
38
It makes no sense that they would close the SD store after a few years. With the salaries they are paying vs. the pricing they have to be making money. Again, why would you open a satellite location if there was not going to be a store in the Capital. The rumor makes no sense. I have been to Ikea a few times and it always seemed busy.

LTS