IKEA launch budget "Moxy" hotel chain in Milan

19th Sep 2014

Photo credit: IKEA

IKEA has made the move into the hospitality sector in a big way by opening its first ever budget hotel in Milan. Word is that locations in Antwerp, Brussels and Ghent are also on the cards in the near future though ideal locations have yet to be found, as chief executive of Inter Hospitality (IKEA subsidiary brand) Peter Andrews explains:

"We want a Moxy hotel near Brussels Airport and the Antwerp city center. We are also looking around in Ghent but is incredibly hard to find a good location. There were talks, but they did not lead to anything. Nevertheless, we hope to come to Belgium soon." The ultimate plan is to open 150 hotels over the next decade.

The furniture brand has gone into partnership with Marriot to create the “Moxy” hotels – fashionable, budget spaces which contain between 150 and 200 rooms and span 5,000 to 10,000 sqm. Prices will lie between €65 and €95, and the complexes themselves will be built in Italy and then shipped piece by piece to the location – a building process that will take approximately a year. The promise is "contemporary stylish design, approachable service and, most importantly, an affordable price".

The furnishings are to be produced by IKEA though not available for purchase in-store – and will be chic yet simple, to reflect the budget price. They are to be “functional and well-designed” in “calming neutral tones that “evoke an organic, comfortable and restorative feel." It is predicted that the UK – where affordable hotel chains such as Travelodge have flourished – will be an important market for Moxy. Last year IKEA gained approval for the revamp of a plot of land called the Strand East in Stratford, which is likely to become a hotel site, as well as space for homes, shops and offices. The managing director of IKEA's property sector Peter Andrews said the project "gives us a great opportunity to use our development expertise to build a high-quality hotel property investment portfolio.”

This foray into the hospitality sector is not the first venture outside of retail for the brand, and it seems certainly not to be the last. Though the company name is synonymous with homeware, the holding firm Inter IKEA also has a property division with land and real estate in the UK, Belgium, Poland and Spain, and the finance arm manages investments worth €2.3 billion. There has even been talk of moving into the student accommodation area in a variety of European countries, so there is no resting on laurels for IKEA, only a determination to conquer each new sector it enters. The combination of consistent good service, innovative design and low pricing has meant the brand has succeeded in every country and area, with eager customers queuing outside each new branch before it opens for the first time. The business savvy that has been shown suggests it will prove a worthy rival for current UK budget hotel brands, such as Premier Inn. The aim to build 150 locations in ten years shows a confidence that for other companies could be called too bold - but IKEA has the goods to back it up.

Elizabeth McLoughlin

My Retail Media

Why Urban Outfitters' shock marketing has gone too far

17th Sep 2014

Urban Outfitters has pulled a sweatshirt from its website after enraged members of the public noted that the Kent State University-branded garment – which appeared to be stained with blood – was tastelessly alluding to the deadly Vietnam war protests that took place on campus in 1970. Four students were shot and killed by National Guardsmen and nine more were wounded, one of whom suffers from permanent paralysis to this day.

Read more…

From the weekend: Slick, savvy and social, London Fashion Week goes tech

15th Sep 2014

While Paris has long retained its crown as the haute of couture (even for ready to wear), London is now beginning to define itself as the tech-savvy little sister, intent on bringing a host of ‘social firsts’ to the industry presentations. As the first city to live stream catwalk shows, based in a country with one of the fastest adoption rates of internet shopping and with many shows taking place round the corner from the so-called Silicon Roundabout, it’s no wonder we’re so intent on a technology focus to showcase our cutting edge designs. To most brands in London, it’s a no-brainer.

Read more…

Apple enter exciting new territory with launch of greatly anticipated iPhone 6 and iWatch

10th Sep 2014

Yesterday evening the new iPhone 6 was launched to great anticipation, as a queue formed throughout the day outside the Apple Regent Street flagship, and two fans erected tents to wait in. The sense of eagerness is especially evident as the models are not available for sale until September 19th.

Read more…

From the weekend: a tale of two sectors for Morrisons, Primark, Next and B&Q

8th Sep 2014

It’s always strange the kind of comparisons drawn up on a big results week for the retail industry. We’re quite happy to pit the performance of one retailer against another, pushing aside the fact that the recession has not treated every brand on the high street as equal. The expected losses and gains we’ll wait for this week are always heightened by the fact that one company’s excuse of a wash-out summer can be another’s claim to glory, but you can’t help but feel sorry for Morrisons when it comes up against a brand like Next.

Read more…

Should Asos be worried? Zalando prepares for IPO

4th Sep 2014

Zalando has announced it will launch an initial public offering this year, as it looks to raise more than EUR 500 million to fund expansion. The Berlin-based firm on Wednesday revealed it would list a 10 to 11 per cent stake on the Frankfurt stock exchange this year, which could value the company at at least EUR 4.5 billion, making it one of Germany’s biggest technology flotations for years.

Read more…

Mobile visits to retail websites outstrips desktop traffic for the first time

2nd Sep 2014

For the first time in history visits to retail websites via mobile devices have overtaken desktop traffic. According to the IMRG Capgemini Quarterly Benchmarking report, 36 per cent of e-commerce sales are from tablets and smartphones - a figure which rises to 40 per cent for clothing and apparel sales.
Smartphones accounted for 18 per cent of sales completed via a mobile device, while tablets account for an enormous 82 per cent - perhaps an indication that those retailers who have yet to release an iPad-friendly app should get a move on.

Read more…

Reporting from Zalando’s Insights day in Berlin

28th Aug 2014

An initial public offering may be the only thing on the press’ mind, but a trip to Zalando HQ as it announces another stellar first half shows there is a lot more going on behind the scenes. Whether an IPO is on the cards or not, it seems the endless questions have turned into an in-joke for founder David Schneider and members of the management team, as they tell press they will not be answering any questions on the possibility of a share debut.

Read more…

The perfect fit: Bringing Australian brand Lorna Jane to the UK

26th Aug 2014

Innovative, stylish and female-focused, Australia's leading activewear brand Lorna Jane has gained a cult-following for its fresh take on sportswear and all-round appeal for well being. Less than a month into its online launch with House of Fraser in the UK, My-Retail Media caught up with Emma Marlow, managing director of the Lorna Jane franchising company Hearts & Minds, to talk fitness, future, and blue sky thinking.

Read more…

Lidl won the "big four" price war - but is it too much, too soon?

21st Aug 2014

Ever since the global economic crash in 2008, retailers have been forced to adapt to the harsher business terrain in order to survive. Many have fallen into the grasping clutches of administrators after their respective target markets tightened purse strings and put a stop to wanton spending, instead preferring to save their disposable income in case the going got tougher. But some businesses - and there are just a few - have benefitted from British shoppers’ tendency to plump for lower-priced goods as the economy struggles to regain its posture.

Supermarkets at the highest and lowest points on the price spectrum have been largely shielded from the knock-on effects of a poorer population; those at the very top were mainly patronised by affluent customers who have suffered the least in terms of reductions in disposable income, and those at the very bottom have maintained their customer base as well as welcoming those who formerly spent their cash at mid-point supermarkets, like Sainsbury’s and Tesco.

Read more…

News@Nine

Enter your email address below to receive our FREE Daily Retail eNewsletter

Click here to read the latest edition


 Facebook   Twitter   LinkedIn   Google+ 

High Street Tracker

  • Non-fashion -1.8 %
  • Fashion -2.4 %
  • Homewares -2.4 %
  • Non-store +40.2 %