IKEA has invested $4 billion in Russia since opening its first store in 2000 by Elea Ortega

IKEA Will Focus on Existing Investments

IKEA is changing its strategy in Russia to focus on existing stores rather than expansion to more sites, new IKEA CEO for Russia Per Wendschlag said Wednesday.

No new sites will be opened in the next three to five years, he said.

"We put in the tenants who were waiting," Wendschlag said of the company's Mega malls. Now more attention will be paid to the mix of tenants and to upgrading and expanding the facilities. There are 12 malls currently in operation in Russia.

Investment will continue, Wendschlag said, but it will be funneled "into other things."

http://www.themoscowtimes.com/news/article/ikea-will-focus-on-existing-investments/418610.html

-------------------------------------------- My Opinion about it --------------

I consider that is a really smart decision made, because sometimes big enterprises, they just want to grow and grow all around a country, which is not always bad, but it is really important to be focus on the other subsidiaries. Wendschlag also said that, they were going to take a break. And if you click on the link to the complete news you are going to found out, that they had problem because of the previous CEO, that made some mistakes. So I believe that, they are also busy, trying to fix those bad holes that the other guy made. Because now Wendschlag is the responsible of taking care the whole damages if there is any. IKEA is a good company, their products are really good, and they have the advantage that none of the local stores have the products that IKEA has, so they will be good. Furthermore, Wendschlag did not say that they were just not going to open new subsidiaries, they also are going to expand on the ones that already exists so, they will be investing but not opening new subsidiaries in Russia.