Icelandic businessmen help IKEA expand to Estonia

09.01.2012, 10:57

Icelandic businessmen who are bringing world-famous IKEA department store in Lithuania have decided to expand the business also to Estonia and Latvia, writes Äripäev.

Speculations about the plans of IKEA to open its stores in the Baltic countries have been circulating for years, but this is the first time that there seems to be a solid base for this.

The only difference is that the store is arriving in the Baltic countries through two Icelandic businessmen, brothers Sigurdur and Jon Palmason.

Palmasons who are developing the first IKEA store near the Vilnius airport have now said in public that they will expand IKEA chain also to Estonia and Latvia.

Hanna Gustafsson, press spokesperson of Palmasons, told Äripäev that once the Lithuanian store is up and running, next steps will be taken in Estonia and Latvia. She did not specify whether Palmasons have already acquired local property for the project.

Estonian commercial registry has no sign of activities where Palmasons could be involved.

In Lithuania, the company owned by them has acquired 15 hectares of land and plan to start construction this spring for a 25,000 square-metres store. Grand opening is planned to be in autumn 2013 and the total investment is believed to exceed 100 million euros.

Palmasons have been holding an IKEA franchise in Iceland since 1981 and run the only IKEA store in the country. IKEA has 290 own stores worldwide in 26 countries and another 40 franchise stores in 15 countries.