Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

SAMARA, RUSSIA-Sweden's giant furniture retailer Ikea is considering halting its expansion drive into Russia after running into trouble with unpredictable officialdom – although locals say the economic crisis may be as much of a factor as the local bureaucracy.

After opening 11 of its iconic stores in Russia over the last just nine years, Ikea hit a bump when officials in Samara in the Volga River region demanded a planned store be able to withstand near-hurricane-force winds, even though such violent weather is rare. Ikea was due to open the store in May but now says new demands make timing uncertain.

Another blow came when Russia's anti-trust watchdog began investigating the group for allegedly urging tenants at its mall near Moscow to use services of selected firms – an accusation it denies. "Every time there is some kind of inspection, new points come up, so one gets a feeling that someone somewhere does not like us," said Ikea Russia MD Per Kaufmann in a recent interview. "The Russian board today questions whether it's worthwhile to expand further. First we need to open up in Samara, then we will see."

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.