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Ikea gets Kika competition

AUSTRIAN furniture retailer Kika will open its first shop in Slovakia on November 16, creating competition for Swedish firm Ikea. The Kika store will be situated close to the Ikea store and employ around 200 people, the Pravda daily reported.

The company invested Sk850 million (€22 million) in the new project in Bratislava.

According to Ľubomír Drahovský from the Terno agency Kika is more expensive than Ikea because the furniture in Ikea is supplied non-assembled. Savings are thus made on labour.

Drahovský expects that the arrival of Kika in Slovakia will have the same effect on the Slovak market as when German Europa Möbel came earlier this year.

"What until now were scattered Slovak furniture retailers are now starting to unite. For instance, they create central purchase units so they can negotiate better business conditions," said Drahovský.

Compiled by Martina Jurinová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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