MONDAY October 25, 2021
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Daily Record JACKSONVILLE
THE MATHIS REPORT
Daily Record JACKSONVILLE
Ikea’s pandemic challenges PANDEMIC EFFECT
Nace said the pandemic, which led to business shutdowns in March 2020 and people working from home, affect business. “If you look at home furnishing companies, The Home Depot, Lowe’s, local handymen, contractors – everybody’s gotten a lot busier,” Nace said. “People are spending a lot more time at home, so it is actually increasing the demand in our business.” The downside is supply and staffing shortages. As for supply, “we’re trying our best to get as much as we can,” Nace said. At the time of his presentation, he said he had seen information “that we had over 11,000 containers on ships waiting to come into ports.” “The ports are backed up. We have global suppliers. The pandemic has hit them differently all over the globe,” he said. The Wall Street Journal reported Oct. 15 that a significant share of the world’s largest furniture seller’s products “are missing from store shelves around the world, with many of its flatpacks and houseware items sitting idle at warehouses waiting for trucks.” The companion challenge is staffing. “Probably like a lot of other businesses, staffing has been really difficult especially in the past six to nine months,” Nace said. The Jacksonville store fluctuates from 230 to 260 employees. He said the location is not one of the company’s highestvolume stores. “We’re growing as the area’s growing. I think they put this store here, looking five, 10 years down the road,” he said. The market area is considered to be within an hour’s drive. “This is an investment. We see Jacksonville (as) a growing city.”
“We’re growing as the area’s growing. I think they put this JACKSONVILLE store here, looking five, 10 years down the road.”
Daily Record Daily Record
KAREN BRUNE MATHIS EDITOR
Chris Nace, market manager for the Swedish home furnishings giant, offers insight into the supply chain, labor and market shifts the company is facing.
Ikea, the Sweden-based selfassembly furniture store that opened in Jacksonville in 2017, experienced at least four pandemic-related shifts. Those are increased demand; supply chain issues; staffing challenges; and customer moves toward online ordering and pickup, including the end of the Ikea catalog that began distribution in 1951. “The Ikea business idea is to offer a wide range of home furnishings for design and function at prices so low that as many people as possible will be able to afford it,” said Chris Nace, Ikea market manager in Jacksonville. “It’s about being available to the masses, and that’s something we carry with us today.” It also is focused on sustainability in all areas of the privately owned company’s operations. Nace spoke Sept. 28 to the JAX Chamber South Council, which met at Prati Italia in The Markets at Town Center. Ikea operates a 290,000-squarefoot store at 7801 Gate Parkway, at Interstate 295. It was the company’s fifth Florida location.
SEE MATHIS, PAGE 2
CHRIS NACE, IKEA MARKET MANAGER IN JACKSONVILLE
JACKSONVILLE
The Ikea Jacksonville store at 7801 Gate Parkway near Interstate 295 opened in 2017.
Photo illustration
Becknell applies to build two spec warehouses The city is reviewing permit applications for construction of two Becknell Industrial warehouses in Westlake Industrial Park at costs totaling $30 million. Becknell applied for permits to build the 419,280-square-foot Building 2 on 35.64 acres at a cost of $18 million and the 270,716-squarefoot Building 1 on 24.38 acres at $12 million. They are marketed as fulfillment/distribution centers. Delivery is expected in the second quarter of 2022. A third building, also 270,716 square feet, is planned. “The industrial market is experiencing activity the likes of which we haven’t seen,” Colliers Associate Director Seda Preston said Oct. 15 by email. “Vacancy in functional product is around 2%, leasing velocity is high and rental rates are up about 10% in just the last few weeks.”
VOLUME 108, NO. 240 • ONE SECTION