IKEA to open several stores in Kyiv, report says

The Swedish-founded IKEA furniture retailer is in
talks to open several stores in Kyiv shopping centers, the liga.net news agency
reported on Sept. 11, citing an anonymous source identified as the director of
a consulting company. A rental agreement has already been signed for 4,000 sq m
in one of Kyiv’s largest shopping malls, the source said.

On his Facebook page, President Poroshenko confirmed
IKEA’s arrival, announcing that he had a Sept. 11 meeting with an IKEA
executive. “Ukraine long awaited this news, and many changes have occurred in
recent years that made IKEA opening in our country possible,” he wrote. “This
is a nice signal for the world’s brands that they need to work with Ukraine.”

Starbucks Coffee doesn’t have plans to enter the
Ukrainian market, said on Sept. 11 Yulia Kovaliv, the head of the Office of the
National Investment Council. “Currently, there are no timelines or visions on
entering the market,” she told Radio NV. “But looking at the Ukrainian market,
it’s understood that it’s not large for this company.”

Zenon Zawada: For a decade
now, IKEA has been for Ukrainians a barometer of Western integration and
fighting corruption, particularly since it developed a reputation of refusing
to abide by any corrupt practices. So when the first store opens in several
months, it will be celebrated (particularly by politicians) as Ukraine’s latest
success in Western integration.

Global franchises like Starbucks could very well
follow IKEA’s lead if Ukraine remains on the path to adopting EU norms and
regulations, particularly with its judicial system. But while global chains have
the resources to open retail outlets – and the connections to meet with people
like the president – small and medium entrepreneurs continue to operate under
very unstable and adverse conditions.