Ikea in Nashville (business)

[ariesjow]

Originally Posted by JoninATX

Congrats Nashville on luring Ikea. The one I go to in Austin had recently expanded and was just built 6 yrs ago, overall Ikea nice and has decent furniture I go every now and then. Btw, this is the first I've heard about the 2 million rule.

Nothing is set in stone. IKEA is still denying that they have any "plans" to open a store in Nashville. Of course, that doesn't mean they are not well into negotiations. These major retailers usually play it close to the vest until they dot their I's and cross their T's.

I think the 2 million in a 60 mile radius is more of a guideline for them, but clearly not a bright-line rule as they have a handful of stores in North America in markets smaller.

[nashvols]

If 60 miles is the guideline, we're already there. Our 60 mile radius population was 1.8 million in 2000. Our metro grew by 278,000 in the last 10 years alone. 60 miles includes Clarksville, Columbia, Shelbyville, part of Manchester, half of Bowling Green, Russelville, and all of the Fort Campbell area. We're probably around 2.15 million right now, if not a little more.

[Hey_Hey]

If one does come, I don't see it locating anywhere except Cool Springs, Green Hills or possible the Northwestern Mutual site in the North Gulch. Cool Springs and Green Hills are clearly the retail centers of this part of the state. I mention the Northwestern Mutual site because it puts it in the middle of Nashville's urban housing boom, is central to the entire metro area, has the ability to anchor a revolutionary mixed use development, and is near the junction of I-24, I-40, and I-65.

Now whether or not they do come is another questions. Nashville is the type of market they want.....young, hip, plenty of urban living options. The 2 million mark is probably not that big of an issue at this point. The Nashville MSA is on pace to hit 2 million by 2020-2022, and is already there if including other nearby metros within 60 miles. At the earliest, it wouldn't open until 2015, and more likely 2016 or 2017 which would put the MSA population at 1.8-1.9 million. However, opening a Nashville store will definitely cut into the business of the Atlanta store and to a much lesser degree the Cincinnati store by pulling people from Kentucky here. They may be able to open stores in other similar markets without risking the revenue of other existing stores.

[vivelafrance]

Originally Posted by Hey_Hey

If one does come, I don't see it locating anywhere except Cool Springs, Green Hills or possible the Northwestern Mutual site in the North Gulch. Cool Springs and Green Hills are clearly the retail centers of this part of the state. I mention the Northwestern Mutual site because it puts it in the middle of Nashville's urban housing boom, is central to the entire metro area, has the ability to anchor a revolutionary mixed use development, and is near the junction of I-24, I-40, and I-65.

Now whether or not they do come is another questions. Nashville is the type of market they want.....young, hip, plenty of urban living options. The 2 million mark is probably not that big of an issue at this point. The Nashville MSA is on pace to hit 2 million by 2020-2022, and is already there if including other nearby metros within 60 miles. At the earliest, it wouldn't open until 2015, and more likely 2016 or 2017 which would put the MSA population at 1.8-1.9 million. However, opening a Nashville store will definitely cut into the business of the Atlanta store and to a much lesser degree the Cincinnati store by pulling people from Kentucky here. They may be able to open stores in other similar markets without risking the revenue of other existing stores.

I've noticed that Ikea doesn't necessarily look for the "hottest" retail areas and I would guess Green Hills would have a 0% chance. I would think the Rivergate, Smyrna/Murfreesboro, and Mt Juliet/Lebanon areas would have a good shot as well along with Cool Springs and the downtown location. The Ikea here in Boston is located well over half an hour outside the city in a small town called Stoughton with no major mall or destination retail center around just some big box stores and furniture places. It definitely doesn't appear to be an affluent area.

[El Passeaux]

Originally Posted by vivelafrance

I've noticed that Ikea doesn't necessarily look for the "hottest" retail areas and I would guess Green Hills would have a 0% chance. I would think the Rivergate, Smyrna/Murfreesboro, and Mt Juliet/Lebanon areas would have a good shot as well along with Cool Springs and the downtown location. The Ikea here in Boston is located well over half an hour outside the city in a small town called Stoughton with no major mall or destination retail center around just some big box stores and furniture places. It definitely doesn't appear to be an affluent area.

That is correct. Ikea in the cities I have lived in, Ikea is always out a ways, Chandler, AZ, Frisco, TX, Bolingbrook and Schaumburg, IL.

[bigcitymike]

Originally Posted by El Passeaux

That is correct. Ikea in the cities I have lived in, Ikea is always out a ways, Chandler, AZ, Frisco, TX, Bolingbrook and Schaumburg, IL.

Since all we're doing is spit-balling here, this is the reason why I previously suggested Lebanon / Wilson County as a prime location. It would also be 30 miles closer to the C-towns and Knoxville (Hello Vols), compared to a site downtown.

Taxes might play a role, and Nashville/Metro is known for backing up the money truck to cover taxes for a company for years and years.

[nashvols]

The one in Portland is out by the airport. Any chance that a development like Buchanon Point near Donelson lands this?

[kmoore8]

Originally Posted by Hey_Hey

At the earliest, it wouldn't open until 2015, and more likely 2016 or 2017

Mid 2015 at the latest. IF they can work out the details. IF.

[Hey_Hey]

Originally Posted by bigcitymike

Since all we're doing is spit-balling here, this is the reason why I previously suggested Lebanon / Wilson County as a prime location. It would also be 30 miles closer to the C-towns and Knoxville (Hello Vols), compared to a site downtown.

Taxes might play a role, and Nashville/Metro is known for backing up the money truck to cover taxes for a company for years and years.

Of course it would also be 30 minutes further from Memphis, Louisville, jackson, Huntsville, and bowling green, and just as far for Chattanooga.

[JMT]

Originally Posted by Hey_Hey

Of course it would also be 30 minutes further from Memphis, Louisville, jackson, Huntsville, and bowling green, and just as far for Chattanooga.

Exactly, which is why I think the original location just west of downtown Nashville would be the best. When IKEA went into Atlanta they built just a few blocks north of downtown smack in the middle of the city. It has been wildly successful. Being close to Nashville's hip urban neighborhoods but also right off an interstate (I-40 in this case) would be perfect.