Thursday 14 June 2007

Conditions could delay Ikea store until 2010

SWEDISH furniture retailer Ikea has been given the green light by An Bord Pleanála to build its first outlet in the Republic of Ireland, although the planned opening of the controversial superstore could face delays due to a number of planning conditions.

Ikea, one the best-known brands across Europe due to the success of its flat-pack furniture, will locate its new store just off the M50 motorway in Ballymun.

The company originally hoped it could open the large, 30,600 sq² facility in May 2008. However, An Bord Pleanála has ruled that the store cannot open until the upgrade of the M50 near Ballymun is completed, along with work on access roads to the store.

The National RoadsAuthority has estimated that the relevant section of the M50 might not be finished until 2010.

However, an Ikea spokesperson said yesterday that the company hoped its Irish store could still open for business by September 2008.

The ruling means that thousands of Irish shoppers who travel to Britain annually to visit Ikea stores in Glasgow and Manchester are likely to continue with such trips for now.

Ikea’s first outlet in the North is scheduled to open in east Belfast by the end of the year.

Yesterday’s decision has been welcomed by Ikea, as well as business interests including the Dublin Chamber of Commerce and Ballymun Regeneration — the Dublin City Council company overseeing the redesign of the north Dublin suburb.

Ciarán Murray, managing director of Ballymun Regeneration, said the Ikea outlet would directly employ 500 staff as well as attracting thousands of visitors to the area.

As part of the planning conditions imposed by ABP, Ikea must provide a regular shuttle bus to Ballymun town centre.

The company must also implement a system of parking charges during peak hours for almost 2,000 parking spaces — in order to limit the number of vehicles using the store at busy times.

In order to minimise the effect on M50 traffic, the store will not be allowed to open before 11am on weekdays and must remain open until 10pm, or 8pm on Saturdays and 7pm on Sundays and public holidays.

Ikea must also provide a home delivery service within 12 months of starting trading in order to encourage customers to use public transport. In its first year of operations, Ikea will also be forced to close its store during the annual pre-Christmas “Operation Freeflow” traffic programme in Dublin.

The ABP decision brings to an end the long-running saga that began when the Government altered its own retail planning guidelines in 2005 to facilitate the Swedish furniture group — raising the size limit on big shopping outlets.

A Fingal County Council grant of planning permission to Ikea last October was appealed by the Green Party, the NRA, Tesco, the Grafton Group, Treasury Holdings and the Irish Hardware Association.

Ikea in Ireland: what’s in store

IRISH DIY enthusiasts will soon be able to enjoy the flat-pack furniture that has made Ikea a household name around the world.

Although some uncertainty still surrounds the exact opening date for the company’s first outlet in the Republic, its proposed store at Ballymun is certain to become a huge hit with householders.

The Swedish furniture retailer already operates 284 stores in 36 countries, which were visited by a total of more than 504 million customers last year.

As an example of the scale of its operations, Ikea’s annual turnover in 2006 reached €17.6 billion, while 174 million copies of its free catalogue was printed last year.

The Ballymun store, which is set on a 100-acre site, will carry almost 10,000 product lines.

“Irish customers will enjoy the full product range from day one at Ballymun,” said Ikea spokesman Gary Deacon.

The retail space will consist of a showroom, 500-seater restaurant, Swedish food hall and creche as well as parking spaces for almost 2,000 cars and 12 coaches.

Its Dublin store will be similar to its Glasgow outlet in size.

www.ikea.com

Irish Examiner

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