Ikea plans to open its first store in Mexico

IKEA, the world's largest furniture retailer, will open its first store in Mexico in the fall of 2020, the company said on Wednesday, as the furniture retailer expands in Latin America to counter growing competition in its core U.S. and European markets.

The Swedish chain known for its modern and inexpensive designs plans to open a store in eastern Mexico City and sell its products online, Malcolm Pruys, the country retail manager for IKEA Mexico, said at an event in the capital. Stores in Europe and the United States drive the majority of sales for Inter IKEA Group and its franchisees, but rival retailers, especially online, are increasingly vying for shoppers.

IKEA has 427 stores across 52 markets, with more in the works. Late last year, IKEA announced plans to enter Latin America, starting with Chile in 2020 followed by Colombia and Peru.