INTER IKEA CENTRE GROUP
NEWSLETTER Issue 2, 2010
DEAR BUSINESS PARTNERS, you are reading this year’s second edition of our e-newsletter featuring news concerning the developers Inter IKEA Centre Czech Republic and Inter IKEA Centre Slovakia. In this issue you will learn how the two companies, developer Inter IKEA Centre Group and furniture retailer IKEA have been working together. Even though the company names are similar and the public often takes one for the other, they are two separate companies with different core business. We will explain how they are connected, what they have in common and what is different. This issue features a unique opportunity to read an exclusive interview with Inge Juliusson, IKEA Marketing Manager (CZ/ HU/SK) on the connection and cooperation between the two companies. We hope that you will find our IICG newsletter helpful and that it shall provide you with the answers to your questions concerning the activities of these businesses. This way you will have the opportunity to be the first to have Access to information and news about one of the biggest developers in Europe, who is also your business partner. The aim; to make more efficient use of our communication to you and improve the quality, thus giving you the chance to get to know us better as a company. In selecting the contents of each single issue we try to meet your needs and we will be happy to take any questions and comments you may have. Wishing you an inspiring reading experience, Yours sincerely, Ivana Žoldošová Country Marketing Manager Inter IKEA Centre Czech Republic and Inter IKEA Centre Slovakia
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IKEA AND SHOPPING CENTRES WILL BE CONNECTED One of Europe’s biggest developers Inter IKEA Centre Group (IICG) and the successful furniture retailer IKEA have launched a new unique concept – total integration of the IKEA store in IICG shopping centres. The reason behind the modified concept is customer’s satisfaction: now they can walk in from the shopping centre straight into the furniture store without enduring rain or snow. They can easily buy all they need under one roof. The new concept was implemented in Portugal two years ago for the first time in the project of MAR Shopping regional shopping centre with an area of 100,000 square metres. Following the succes of Portuguese centre the developer IICG opened Port Łódź shopping destination in Poland this year. “We will bring the unique concept of total integration of an IKEA store in the Avion shopping centres both to the Czech Republic and Slovakia in the near future,” stated Zuzana Mizerová, Development Manager at Inter IKEA Centre Czech Republic and Inter IKEA Centre Slovakia. This change will relate not just to new shopping centres, but also to existing ones. ,,It improves our opportunities to create a more environmentally friendly visitor flow,“ stated Mikael Ohlsson, IKEA Group President and CEO.
HISTORY
COOPERATION IICG AND IKEA IKEA is well known as a successful manufacturer of furniture with a unique design and business strategy. The success of IKEA stores and its retail development as such gave rise to the idea to expand its scope of business and build equally successful shopping centres next to IKEA stores. Thanks to IKEA’s open-minded attitude and philosophy, these activities saw a rapid development that led to a need for even more flexibility in reacting to market demands. The answer came in the form of a new company specialising
in the very dynamic field of shopping centre development and operation. Inter IKEA Centre Group (IICG) owned by IKEA Group and Inter IKEA Group was established in Denmark in 2001. The establishment of IICG gave rise to a unique concept of a long-term partnership based on the fact that the company is at the same time the investor, the developer and the operator of shopping centres with a unique business partner – its anchor tenant IKEA. IICG subsidiaries were gradually established in the various countries of
operation due to different local market needs. This is how IIC Czech Republic and IIC Slovak Republic came to be in 2003. In 2008 the entire IICG restructured internally, which enabled the company to achieve an even better professional focus. It split in two divisions. Development called Region Central Europe covers new locations and projects. Property operates and develops existing shopping centres. Both divisions are parts of Inter IKEA Centre Czech Republic and Inter IKEA Centre Slovak Republic.
RELATIONSHIP BETWEEN INTER IKEA CENTRE GROUP AND IKEA A unique partnership
IICG Core business: lease of retail premises
Common business aspects IICG and IKEA: • IICG always builds its shopping centres with IKEA, which is its anchor tenant
IKEA Core business: sales of furniture and household accessories
• Family Friendly concept – services and range of goods for all family members What is typical for IICG business:
• customer focus
What is typical for IKEA business:
• design and development of regional shopping centres with a unique mix of tenants (featuring a broad range of products and services)
• corporate culture and values: leadership by example, simplicity, striving to meet reality, humbleness and willpower, togetherness and enthusiasm, willingness to accept and delegate responsibility
• IKEA provides its customers with well-designed and highly functional products for a low price
• professional administration of attractive shopping destinations
• expansion policy • social responsibility - energy savings, waste separation • catchment area covers up to one hour’s drive • marketing activities promote mutual synergy • maintenance of premises
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• a unique sales concept – customers can take the goods with them in practical space-saving packaging easy to transport and they can assemble the furniture themselves • a unique sales concept – the goods are displayed in showrooms located directly in IKEA stores
IICG IN 2009
INTERVIEW
• IICG administers more than one million square meters of retail area; it operates in 13 countries of Europe and in China
A NEW CONCEPT
WILL SHOPPING MADE EASIER
• Inter IKEA Centre Group has projects in the pipeline in all countries where it operates including new markets such as Serbia, Croatia, France, Italy, and Spain
Ivana Žoldošová, Country Marketing Manager of IIC Czech Republic and IIC Slovak Republic answers questions about cooperation between the IICG and IKEA.
• In 2009 IICG launched with momentum its new Homepark centre in Köln-Am Butzweilerhof covering over 122,000 square metres • In 2009 IICG employed a total of 408 employees in 13 countries across Europe and in China, these numbers should increase by 20% over the next years • Last year, Inter IKEA Centre Czech Republic employed 63 people; Inter IKEA Centre Slovak Republic employed 33 people Source: IICG
This is a revolutionary step forward of the IKEA concept
What do you think of this new unique concept of integrating IKEA into the shopping centre? I believe the new concept is a revolutionary step forward in the IKEA concept that is clearly defined and does not allow any deviations. Although this philosophy guaranteed a stable market position to both the IKEA company and the IKEA brand, the present has brought opportunities that even a proven concept such as that of IKEA must react to. The unique concept reflects shopping centre customer’s needs. It will make their shopping experience easier and more comfortable as they can visit both the shopping centre and the IKEA store in one trip. It will strengthen the joint synergy between IKEA and our shopping centres in sharing customers and expanding their customer base. IKEA and IICG share the same corporate culture including some values that define their management style. Which is your favourite value and why? The value I feel most attached to is striving to meet reality. I follow it when I set objectives, both in business and in my personal life. Nothing will give you more bitter disappointment than unrealistic expectations.
Ivana Žoldošová has worked for Inter IKEA Centre Group since 2007 as the Counry Marketing Manager for the Czech Republic and Slovakia. She covers activities of four Marketing Managers of Avion Shopping
Park
(Bratislava,
Ostrava,
Brno
and
Praha)
as
well
as
corporate marketing. She has extensive experience in retail, FMCG, and product marketing. She worked, for example, for St. Nicolaus. Prior to that she was the Marketing Manager of a company that operates
in
the
financial
sector.
She
gained
professional
experience during her many years of work in the fields of advertisement, media and marketing.
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How is your cooperation with IKEA in the field of marketing? Despite the fact that the scope of business of the IICG is different from that of IKEA, marketing combines our visions, values and customer approach. We search for effective tools to be able to attract as many customers as possible together and to make their experience in the shopping centre and in the IKEA store more pleasant. Marketing cooperation is undertaken for instance during our joint customer events, or when we address customers and share survey outcomes. How is your working relationship with Inge Juliusson (Marketing Manager at IKEA CZ/HU/SK)? We have completely different personalities with a different brain structure. It is thanks to these differences that our discussions lead us to uncover new ideas and creative solutions. My cooperation with Inge is very inspiring. Do you shop at IKEA? What did you buy last time you shopped there? We are in the process of furnishing our house so I shop at IKEA on a regular basis. Bigger items I have bought there include my kitchen, kids room and tons of interior furnishings. From my perspective as a customer IKEA is great in that it offers a solution to everything, moreover of a high quality and for a reasonable price. Source: IIC CZ/SK
IKEA IN 2009
INTERVIEW
• During the previous financial year, IKEA Group opened 15 new stores, by which their number increased to reach 267 in August 2009; all stores combined welcomed 590 million visitors • Sales turnover of IKEA Group was 21.5 billion EUR last year • Last year, most IKEA goods were sold in Germany (16%), USA (11%) and France (10%) • The IKEA catalogue was issued in 27 languages and in 56 editions with a total circulation of 198 million issues • IKEA has 1,220 suppliers in 55 countries • IKEA range has 9,500 products • IKEA Group employs people in 39 countries
123,000
• IKEA Group operates 31 shopping offices in 26 countries, 28 distribution centres, and 11 customer distribution centres in 16 countries Source: IKEA Group
I like the fact that we are always on the move
BEING PRESENT IN AVION SHOPPING CENTRES IS AN ADVANTAGE TO IKEA Inge Juliusson, Marketing Manager at IKEA CZ/HU/SK answers questions about cooperation between IKEA and the IICG. What do you think of this new unique concept of integrating IKEA into the shopping centre? From IKEA retail we see it as a big advantage to be situated with the IKEA stores in Avion Shopping Park centres. Since both companies are IKEA-owned companies, we have the same objective - to make as many people as possible happy with their store/shopping centre visit in the cities we are operating. IKEA and IICG share the same corporate culture including some values that define their management style. Which is your favourite value and why? From among IKEA values Constantly being on the way is what is closest to me because I really like that we as an organization always try to do things better and that we always are on the move. How is your cooperation with IICG in the field of marketing? We work together both on the store/ shopping centre level as well as on the regional level. Ivana (Ivana Žoldošová, Country Marketing Manager of IIC CZ/ SK) and I have regular meetings where
Inge Juliusson has been the Marketing Manager at IKEA Czech Republic, Hungary and Slovak Republic for nearly four years. Inge has worked for IKEA since 1976. He gradually worked his way up through a number of positions at the company. He has worked in various roles at IKEA stores – e.g. Store Manager, Regional Sales Manager and Marketing Manager. He worked for IKEA in Sweden and Russia for several years, he has also worked in the field of business development at IKEA International.
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we find ways to coordinate and support local cooperation between Avion Shopping Park and the IKEA store as much as possible. For example in June we took the initiative to have a workshop day together with the Shopping Centre Managers, the Marketing Managers, IKEA Store Managers and Andrew North (General Manager of IKEA CZ/HU/SK) and Pavel Hradec (General Manager of IIC CZ/SK) to work out new ways how we can have win-win cooperation that brings more visitors to Avion Shopping Park and to IKEA. How is your working relationship with Ivana Žoldošova (Country Marketing Manager IIC CZ/SK)? Ivana and I have a really good cooperation and we share most of the basics how we can do marketing for IKEA and Avion Shopping Park. Do you shop in Avion in the Czech Republic or in Slovakia? What did you buy last time you shopped there? Since I work and live near Zličín I often shop in the Avion Shopping Park Zličín. Last time was some days ago when our son had his birthday and we bought him gifts in one of the toy stores. Source: IKEA CZ/HU/SK
INTER IKEA CENTRE GROUP
Inter IKEA Centre Group (IICG) • is an investor, developer and operator of shopping centres • Inter IKEA Centre Czech Republic and Slovak Republic were founded in 2003 and are members of the IICG • operates four shopping centres across the Czech Republic and Slovakia (Prague, Brno, Ostrava and Bratislava) named Avion Shopping Park, with a total area of over 280,000 m² • IICG exclusively builds shopping centres with an IKEA store as the anchor tenant and vice versa
DID YOU KNOW THAT… The big IKEA family also comprises three developer groups that build and operate shopping centres: • Inter IKEA Centre Group (IICG) operates in Europe and in China and is owned by IKEA Group and Inter IKEA Group. Long-term partnership with tenants, professional management and the vicinity of an IKEA store are the main IICG success factors. The Company owns more than a million square meters of retail area in eight countries, with the target to double this number over the next years • IKEA Russia Real Estate deals with commerce, development and management of MEGA MALL shopping centres in Russia
SURVEY: Has the information in this newsletter been helpful for you? What other information would you appreciate? Please send your feedback to: sutarova@seesame.com
Contact: Katarína Šutarová Senior Manager, Client Service Seesame, s.r.o. Prievozská 4/D (Apollo BC) 821 09 Bratislava Slovak Republic Mobil: (+421) 917 654 603 E-mail: sutarova@seesame.com http://www.seesame.com/
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This brochure is a non-contractual document and does not constitute a contractual offer. All information contained in this brochure is for informational use only and we assume no liability for completeness or accuracy. All the information contained in this brochure is subject to change.
© Inter IKEA Centre Group A/S, 2010
• IKANO Retail is a joint venture of IKEA Group and IKANO Group. Together they develop and manage shopping centres connected with IKEA in Scandinavia