The company, known for its inexpensive yet stylish array of home decor, confirmed it will begin construction this winter on a 310,000-square-foot store that will employ more than 300 people. IKEA has been deluged with inquiries since the Salt Lake Tribune reported on Nov. 16 that the company was purchasing land in Draper, IKEA officials said.
The company has yet to complete the purchase of the property but said it was compelled to publicly acknowledge the project because of intense interest in it. IKEA anticipates obtaining the last of its required permits today from Draper City, which has secretly worked with the retailer for months on the plan for the new store.
"It's been a difficult secret to keep, especially the last month," Draper Mayor Darrell Smith said.
IKEA carries a range of home furnishings and other products for the home, including tableware and linens.
The company said it had been scouting the Wasatch Front for sites for more than a year as part of an aggressive western expansion plan. Interest in the store has been high among Utah consumers who shop the retailer online, via catalog or through stores in other states.
The Draper location will include a 150,000-square-foot showroom, a 100,000-square-foot warehouse, regional administrative offices and a 300-seat restaurant featuring a mix of foods such as cinnamon buns, Swedish meatballs, Swedish mousse and poached salmon with vegetables.
The store, which will have 1,300 parking spaces, will be built on 22.5 acres. The company said it will sell another 13 acres of adjoining property to a company that will develop a retail, restaurant and entertainment complex, IKEA real estate manager Doug Greenholz said.
IKEA, which operates 227 stores in 33 countries, typically locates in metropolitan areas with about 2 million people, Greenholz said. The population of the four main Wasatch Front counties - Salt Lake, Utah, Davis and Weber counties - is about 1.9 million, according to state population estimates.
In addition, Utah has a high share of residents under age 35 and a significant percentage of moderate-income households with children.
IKEA tries to appeal to budget-minded people with affordable merchandise and to families with children by offering a full line of children's products and supervised play areas.
Greenholz said the Utah store will offer good-paying jobs with a "generous" benefit package. He declined to divulge any salary information but said wages will be "very competitive" with other retailers in the area.
Unlike Wal-Mart, labor advocacy groups have few qualms with IKEA. All employees have access to health insurance and other employee benefits, which is rare not only in retail but in other industries, as well. Those who work more than 20 hours a week are considered full-time workers, Greenholz said, which means the company pays a greater portion of their health insurance premiums.
Greenholz said the payoff for IKEA is substantial. Unlike other retailers that have high turnover rates, IKEA, like warehouse club Costco, have low turnover rates and spend much less than competitors to recruit and train new employees.
