IKEA, which runs an international network of furniture and household stores, announced today its plans to open a store in Vilnius which will be the first IKEA outlet in the Baltic States. The store, to be built in the vicinity of the Vilnius International Airport, is to be erected by Felit, an Icelandic company operating through a franchise agreement with IKEA.

The investment project, valued 107 million euros, has been supported by the Lithuanian Ministry of Economy and Invest Lithuania, a public agency which offers free consulting services to foreign investors.

“Large international companies invest when they see tangible benefits for their business. IKEA’s decision means that the government has followed the right path in order to improve the business environment and ensure stability in several recent years,” said Rimantas Žylius, the Minister of the Economy.
The fact that IKEA has developed a viable network of partners and suppliers in Lithuania over the past decade was an important argument in encouraging IKEA to open its store in Vilnius, according to Mantas Nocius, General Manager of Invest Lithuania.

“Expanding presence in Lithuania through opening a store looked like a natural next step. This idea has begun materialising about one and a half years ago. We did our best to prop up this project and have the deal done,” Nocius said.

IKEA, which currently runs a network of 325 stores worldwide, is one of the largest furniture and household retailers. Its projected sales are to stand at 26 billion euros in 2011.