Retail in Asia

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IKEA bound for Indonesia as deal constructed with Hero

Indonesian shoppers will soon get easy access to Ikea products after an affiliate of the Swedish design icon signed a deal with Hero Supermarket, one of the country’s largest retailers, to sell its merchandise in Indonesia.

The franchise agreement, signed with Inter Ikea Systems on Thursday, allows Hero to sell Ikea’s furniture and interior design products in Indonesia, Hero said in an Indonesia Stock Exchange (IDX) filing on Monday.

The franchising agreement will allow Hero to open Ikea stores across the archipelago, from 2014 to 2021, the statement said. Ikea will have to approve the number and location of the stores based on its own standards. Hero will have the option to extend the partnership and expand the number of outlets after the franchising agreement expires.

(Source: Jakarta Globe )