Matthew Bronfman: IKEA Netanya to reopen in first half of 2012

"The third store (in the Haifa area) is due to open in the second half of 2013."

"The fire we had in February will strengthen us," said IKEA Israel franchisee Matthew Bronfman, referring to the fire at the store at Netanya. "When we opened the Rishon LeZion store, we thought it would be a good start to our tenth year of operations, and we set our sights on opening a third store. Then the fire put paid to our plans."

Bronfman said that the Netanya store would be reopened in the first half of 2012.

Bronfman added, "When I first heard about the fire, I was told, 'We'll notify you if you should come.' But it was obvious that I had to get on the first plane to Israel. I was stunned by the media coverage and realized that it simply reflected Israelis' feelings toward the brand. I don’t think that many brands enjoy this. Usually in an incident of this kind, consumers turn to competitors, but that didn’t happen here, which is why I believe that we were strengthened."

"Globes": How was revenue for the first four months compared with expectations?

Bronfman: "We had modest growth at the Rishon LeZion store, and we hope that the number of visitors will continue to grow. The third store is due to open in the second half of 2013. IKEA has not yet reached a deal on the land, and it's in talks with locals in Haifa, Nesher, and Kiryat Ata. The third store will have 24,000 square meters."

Do you plan to open a store in the south?

"No."

IKEA Israel chairman Ron Hadassi predicts, "IKEA Israel will have over NIS 1 billion in sales by 2015."

Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

 
 
Ilanit Hayut and Globes' correspondent
 
 
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