
In four weeks, on November 16, IKEA will throw open the doors to its much awaited Canberra store. I personally have been excited for this for quite some time and am in desperate need of a new lounge so I can’t wait.
I wrote about IKEA’s opening in Canberra a little over a year ago and discussed some of the pros and cons of our new Swedish buddy at Majura Park. Most of these are to do with the new jobs IKEA will bring (ACT Chief Minister Andrew Barr will meet with Ikea management and the first 100 or so of around 250 new staff today as they attend an induction day), as well as the jobs it would take from smaller independent furniture stores. A lot of comments did express excitement about Swedish meatballs, so that’s something to keep in mind for the opening date.
I think there’s another side to this though – how will IKEA shape the way big chain furniture stores like Fantastic Furniture and Domayne do business. I mentioned that I was in the market for a new lounge. My lounge looks like something that I pulled out of the Mugga Lane tip. I bought it when I moved to Canberra almost five years ago, from Fantastic Furniture. Five years of binge watching television, having lots and lots of friends’ butts sit on it or crash on it over night, not to mention the delightful impact one of my cats has had on it. It has overstayed its welcome for far too long (the lounge, not the cat) and last month I was sick of waiting for IKEA and took myself off to a major furniture store in search of a new one.
I found one that I liked but it was going to take nearly three months until it actually arrived for me to take home. Three months!? Ridiculous, I say. This isn’t a custom piece, nor is it from a small privately-owned store. It’s a mass produced piece from a major retailer.
I decided then and there I would wait for IKEA. The lounge I wanted from IKEA was better anyway, it’s a tad cheaper, and when I want it I can just walk in and get it.
While IKEA will definitely have negative flow-on effects for some retailers, I think the accessibility of product at IKEA will encourage other retailers here to become more competitive and savvy. No one is going to cop a huge wait when they can get a similar thing immediately from IKEA.
For the sake of small business in the capital I hope IKEA doesn’t thump the independents too hard, but I’m keen to see it force other big businesses to tighten up their trading practice quick smart.
Today’s the big day.
ACT Government doing its best to promote IKEA with the overhead signs on main arterial roads in Canberra advertising the fact and also suggesting that there may be some traffic congestion.
Phillip Clark on 666 is suggesting (jovially) fumes from the meatball vats could interfere with jet aircraft.
Congratulations Ikea!
http://www.huffingtonpost.com.au/2015/10/06/choice-shonky-award_n_8254782.html
You’ll do well in Canberra!
David M said :
You do have to be so careful and take measurements, it’s the same in Europe.
Not only the beds, but the quilts and the covers are different dimensions…so an Ikea King is different to a UK King, but i guess they can’t make every countries size.
But then Aussie and UK sizes are also different for how they classify “standard” sizes.
They are on a winner here:
https://au.finance.yahoo.com/news/migrant-influx-sparks-run-ikea-103315410.html
miz said :
There is a quasi religious fervour about IKEA which is similar to Canberra’s light rail opponents – the primary element of persuasion is not about being rational but about purported ‘look and feel.’
It is fine to check out the possibilities, but you have to engage rationale to avoid being sold a ‘pup’
miz said :
There is a commonality that’s for sure. But to me what is common are keyboard warriors with a holier than thou attitude that they know better and everyone else is so stupid.
IKEA is fine I personally wouldn’t buy most of their furniture but can see why others would. They do however have some quite nice homewares no Allen key required.
There is a quasi religious fervour about IKEA which is similar to Canberra’s light rail proponents – the primary element of persuasion is not about being rational but about purported ‘look and feel.’
It is fine to check out the possibilities, but you have to engage rationale to avoid being sold a ‘pup’
rubaiyat said :
The luck of the ATO will depend on the resolve of both houses of federal parliament in converting all the talk about taxing multinationals.
Locally, there is a rumour that all Volvo drivers will be exempted form parking fines within the ACT effective one week before the next election.
dungfungus said :
Would have loved to have seen the Swedish Tax Office prying that out of his thin spotty claws.
Wonder if the meek ATO will be so lucky? Let alone the ACT government that drew a rezoning line around IKEA’s patch of gifted land next to Majura Road.
Flatpack furniture and an allen key? No thanks!
Interesting:
https://au.finance.yahoo.com/news/ikea-billionaire-pays-first-swedish-110619725.html
Raging Tempest said :
Actually, no, the rails were the correct ones for the bed, and for an Ikea mattress and therefore too short for standard mattresses, it’s something no-one would notice until, as we did, they used a standard mattress.
rosscoact said :
It was meant to be a joke Rossco but you have got me thinking about what is “Australian” these days, especially when it comes to sport which has been totally ruined by money.
Sport has nothing to do with nationality or regional identity anymore.
Some of us even eat horse-meat as a choice these days – how un-Australian is that?
And before JC chimes in to correct me about the venue for the next rugby matches, I am not sure is at going to be a Twickenham so lets say “in Europe”.
dungfungus said :
Are you anti-Australia Dungers?
JimCharles said :
There are some brumbies about to be culled at Twickenham this weekend.
ungruntled said :
They have a mixture, I’ve got a 20 year old large coffee table that’s outstanding quality, you wouldn’t think it was an Ikea and we’ve dragged it to 3 countries now.
But they make a lot of money from the cheap goods they pile high in the marketplaces, and the stuff aimed at students and renters.
watto23 said :
Or even France, where chevaux is very common. My mother fed us burgers from a French campsite bbq many years ago, not knowing what the hell it was until later…..
I’ve often wondered where they get the meat, I know Australia makes its occasional mass Brumby culls self-financing by selling the meat to some market or other. maybe dog food but who knows eh?
Maybe Australian horses are going to Europe?
rubaiyat said :
Wait till you see what concessions the tram people get.
bd84 said :
The furniture stores are all in what used to be the DFO, they haven’t closed.
It will be hard to compete with a huge international operation that not only avoids paying tax by shifting profits offshore but gets the local government to excise a specific piece of land out of the existing zoning just for them.
To what end I do not know. Large corporations have been playing this game all round the world for decades now to the point that they make the major decisions and the governments simply comply.
Most of the furniture shops in Fyshwick have already closed in the last 2 years. A drive along Gladstone street shows a lot of empty shops that used to be selling furniture.
From what I have seen of their products, the main competitor for IKEA is Fantastic Furniture selling cheap flat packs or more expensive stuff that is of a slightly more better quality. Cheap stuff is reflects the actual low quality, the more expensive stuff is better, but not substantially so. Hours of fun after lugging your purchase home to put it all together. This will suit some people, but not a large number of others.
I don’t really expect there to be another rush of more furniture shops closing, or for the big guys to give up on furniture. It appears to have a niche in the market that could be sustained, and like other new shops, the novelty will wear off after a few months.