Sep 11, 2008 7:07 am US/Mountain
Expert: IKEA Thrives In Struggling Economy
CENTENNIAL, Colo. (CBS4) ―
Despite the struggling economy, international furniture retail giant IKEA plans to build a store in Centennial in the near future. One Denver business professor said Wednesday IKEA is able to open a store while others close because of its low-cost offerings.
"As things get tighter people move to low cost substitutes," said Dr. Ron Rizzuto at the University of Denver's Daniels College of Business.
The company has built its brand on offering housing products that are essentially cheap and chic.
Rizzuto also points out the store hasn't broken ground yet and is still in the permit process for a location west of Interstate 25 between Dry Creek and East County Line Roads. He said things could change by the time IKEA opens.
"The housing market will be very different then, it won't be robust but it'll be a lot better than what it is today," Rizzuto said.
IKEA said it will provide 500 construction jobs and then hire 400 full and part-time employees at the 400,000 square foot store.
"This is a great opportunity for IKEA, and it's a great opportunity for Centennial," said Doug Greenholz, an IKEA official.
The store said it already has 75,000 existing customers in Colorado. The closest locations right now to Denver are outside Salt Lake City and in Tempe, Ariz.
"I think they're very smart," Rizzuto said.
IKEA submitted its application for final development plans Wednesday. That means it will be some time before the project breaks ground. The company hasn't given a date for construction or a grand opening.
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