IKEA: We will continue to invest to maintain leadership in the market

Andreas Leonidou, Finance Manager H.M. Housemarket (Cyprus) Ltd – a member of the Fourlis Group that holds the IKEA franchise in Cyprus – talks about the iconic brand’s experience of doing business on the island and its next steps – which do not include opening new shops as significant growth is expected from electronic trade.

Can you tell us more about your company, when you were established in Cyprus and how many offices / members of staff you currently have?

IKEA started it operation in Cyprus in 2007. H.M Housemarket (Cyprus) Ltd is a member of Fourlis Group that holds the franchise for the iconic brand in Cyprus. The Company employs around 300 people.

What do you believe sets your company apart from its competition?

The unique IKEA Vision which is to create a better everyday life for the many people through a wide range of well-designed functional home furnishing products at prices so low that as many people as possible will be able to afford it.

How has your experience of doing business in Cyprus been and would you recommend it to other foreign interest companies looking to relocate?

Doing business in Cyprus due to its small size has its unique character and challenges, but overall is a good experience. Cypriots are business-oriented people who will work hard to achieve their goals.

For foreign interest companies, Cyprus is an ideal location in the Eastern Mediterranean / Middle East region for foreign companies to set up presence. It’s safe, has good infrastructure, an Anglo-Saxon law system, high quality services and a highly trained bilingual workforce. It has ideal weather that expatriates from all over the world love.

This can make it easy to reallocate staff from other regions and / or recruit locally.

What is your view of your sector (locally and on a global level) both as it is today and it’s potential for growth?

The Home Furnishing sector flourishes when the economy in general and construction specifically is growing. It can get an additional boost from tourism. Locally and globally for 2023, growth is expected for a big part of the year with a slowdown towards the end of the year as interest rate increases take effect and inflation continue to reduce the consumer disposable income.

Where do you see your company in five years? Are there any immediate plans for your company you can reveal to us, for example new products, services, plans for expansion?

The company will continue to invest in order to maintain its leadership in the market. The customer experience and new technologies will be the focus. Our aim is to create a seamless meeting with our customers, in the stores, on the web, whenever they want to and in a way that suits them best.

No new shops are planned as significant growth is expected from electronic trade.

How much focus do you put on CSR and being part of the local community?

At IKEA, we want to have a positive impact on the world. That’s why we make it easier for people to live a sustainable life at home. By choosing environmentally friendly products, you contribute to a better future for people and the planet.

The ambition is that, by 2030, all materials in IKEA products will be renewable or recycled. 70% of materials IKEA uses are made from recycled or renewable materials (10% recycled, 60% renewable) with a goal to be 100% by 2030.

Projects concerning energy conservation, use of renewable energy sources and reduction of waste are already in place and more are planned. We have installed photovoltaic systems to cover part of our energy needs and we are in process of switching to a clean energy provider.

The main Social project of the company is “Stathmoi Charas” (Happy Kindergartens). Through the project, community kindergartens are renovated by the IKEA design team, in cooperation with the Ministry of Education. The Ministry identifies kindergartens that require renovation and refurbishment and the IKEA team executes.