IKEA could bring upmarket division Habitat on Romanian market

Furniture and interior decorations retailer Habitat, a part of Swedish group IKEA, could open a store on the Romanian market in the coming period, market sources told ZF. Habitat is IKEA’s upmarket division, which posts turnover worth over 300 million euros internationally. Habitat’s entry onto the Romanian market is alleged to be in the form of a franchise, with talks currently underway with several interested investors. The company is also seeking an approximately 2,000 square-metre plot for its investment. If Habitat’s plans come to life, Romania would become one of the few places in South-Eastern Europe with Habitat operations. IKEA in turn is a franchise on the Romanian market, behind which is businessman Puiu Popoviciu. The store opened by IKEA in the spring of 2007 in the Baneasa area (Northern Bucharest) posted turnover worth 105 million euros last year, thus becoming the largest retailer on the Romanian market. Habitat representatives had not made any comment by the time this issue was ready for print, while IKEA Romania representatives said they had no information on the matter, and could not comment. Ingvard Kamprad, IKEA founder, bought Habitat in 1992, with articles in the international press indicating he had promised the helm of IKEA to whichever of his three sons was most successful in running their arms of Habitat. The Romanian furniture market was put at 1.35 billion euros last year, with the luxury segment generating a few percentage points of the market. Players that operate on the luxury furniture market include Natuzzi, Rovere Mobili and Innova.