Ikea takes a seat in South Philly

(See below for corrections.) Ikea, a Swedish chain furniture store, will open in South Philadelphia in 2004 -- making furniture shopping for Penn students easier. Philadelphia City Council recently approved a re-zoning plan that will allow an Ikea to be built on a 44-acre site at Columbus Boulevard and Snyder Avenue. Construction is scheduled to begin in early March with an official opening set for the following spring. Penn students say that Ikea will be a beneficial addition to the Philadelphia area. College junior Justin Menda said that he "absolutely would love" to see an Ikea come to a location near Penn. He has an Ikea table in his room, and he described Ikea as "beautiful in its simplicity... practical and reasonably priced [and] perfect for a dorm room." Wharton freshman Hans Kullberg said that although he thinks the store will be a good addition to the area and "will be great for the Swedish economy," he doesn't know if he'll take advantage of it. "I'm excited to see it open," Kullberg said. "But I'm not sure if I'll use it." David Fitz, the legislative assistant to City Councilman Frank DiCicco, spearheaded the project and said he is thrilled that Ikea will bring new business and revenues to Philadelphia. "From the city's perspective, it's fantastic," Fitz said. The new Ikea will provide over 1,000 jobs, about half of which are construction jobs, and the other half will be for employees, according to Patrick Smith, Ikea real estate director for the northeastern U.S. The new Ikea will enhance economic development in South Philadelphia, providing millions of dollars in city taxes as well as a $10 to $11 million payroll. The new Ikea store will become the anchor of a shopping center that already includes a Walmart and Target and will soon also be home to several other stores. If the shopping center succeeds, it will lead to a "ripple effect" and more waterfront development, Smith said. "It is one of those rare situations where everyone came out ahead." Fitz noted that while the city usually has to negotiate with businesses in order to draw them to the area, Ikea approached the city with its project proposal. Ikea wants to move to the Philadelphia site because of the size and proximity to both other retail complexes and to I-95, which will make it attractive to customers from the tri-state area. Ikea's expansion is part of the company's "concentration strategy," according to Smith. He said that this location, in addition to its newly opened store in Conshohocken, will enhance Ikea's visibility in the area. He chose the area because "that's where our best customers are." But there were some challenges to securing the site for the new store. The land previously belonged to the Philadelphia Regional Port Authority and was designated to be used as additional space for the expanding port. The area was declared a strategic port by the Department of Defense, Fitz said. The main difficulty City Council faced was "getting Ikea here while maintaining Port Authority activity," Fitz said. There is already increased activity at the port, and the Port Authority could have sued CSX, the company that owns Ikea, in order to retain the land. However, it instead negotiated a deal, with CSX giving up its rights to that area in exchange for land nearby. Ikea currently markets to young single people and young families who are establishing themselves and buying homes. However, "anyone buying furniture will find something at Ikea that suits their tastes," Smith said. And Ikea hopes to be decorating the dorm rooms of the class of 2008.

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