It was announced at the beginning of August that Ikea plans to cater to the Northern Denver Metro area with a second Denver location. With an estimated 2019 open date, the store will be built in Broomfield off Baseline Rd. and 1-25.
However, this announcement has significant positive and negative impacts on Broomfield residents.
On the positive side, Ikea's goal to add a second location in the same metro area - which is unusual for a giant retail store - shows Denver's successful economy and competitive housing market. It showcases how, with hundreds of thousands of people moving to Colorado each year, demand for large retailers like this is growing as well.
The store also estimates to bring in "more than 500 jobs during the construction phase" and "250 employees to staff the store once it's complete." This is a huge employment opportunity for people looking to relocate to the area.
On the downside, however, is the disruption it will bring to residents in the area. The company has stated that the building will look the same as all of the other Ikea stores. While positive for Ikea's branding, the large warehouse building will no doubt be an eye sore to 1-25 and East Baseline Rd. Expected to bring in "about 2.3 million visits per store," the traffic in the area will also become unbearable.
To read more about Ikea's announcement, click the link or read the article written in the Daily Camera below:
Ikea eyes Broomfield site for second Denver-area store
Broomfield mayor says retail outlet could open in 2019 at I-25 and East Baseline Road
By Jennifer RiosStaff Writer
POSTED: 08/04/2016 08:29:03 AM MDT
Swedish furniture giant Ikea announced Thursday that it has identified a site in Broomfield as a possible location for its second superstore in the Denver metro are.
Ikea is considering a 123-acre parcel near Interstate 25 and East Baseline Road, but has not determined a timeframe for either submitting store plans to Broomfield, or when it might open a retail outlet at that location.
Broomfield Mayor Randy Ahrens said the store will be on the northwest corner of that intersection — north of Colo. 7 and west of I-25.
He believes it could open in 2019.
"The city and county of Broomfield is thrilled to welcome an internationally known, adored and respected retail partner to our community," Ahrens said.
Ikea already operates a store at I-25 and East County Line Road in Centennial. That location opened in 2011.
When Ikea first looked at the Denver metro area, Ahrens said, every community was trying to lure the retailer
"At that time they indicated they would eventually like to have two sites, one south and one north. They opted for the southern location first in Cenntennial," he said.
The property currently is held by Northlands Colorado, which is owned by Alberta Development Partners LLC, said Bo Martinez, Broomfield's director of economic development. The owner put the land up for sale this year.
Ikea would be the lead anchor for Broomfield's Regional Retail Center, a plan first established in the mid-1990s that would fill the area with mixed-use development.
"We see not only that corner, but that area as a retail destination in metro Denver," Martinez said. "We see (Ikea) as the anchor of future retail."
This past year, Broomfield has been working with the Swedish retailer on a site in the community, and, in the spring, the company told Broomfield its intentions.
'Huge economic impact'
Founded in 1943, Ikea today has nearly 330 stores in 43 countries, with 42 locations in the U.S., according to the company's 2015 annual report. The retailer reported 771 million store visits last year — an increase of 7.7 percent over 2014. On average, that would mean about 2.3 million visits per store.
Longmont-based retail analyst Jon Schallert called that kind of growth "really amazing."
"That's just a huge economic impact," he said.
Broomfield, Schallert said, should be doing cartwheels right now.
It's unusual for a giant retailer like Ikea to have two superstores in the same metro area, Schallert noted.
Cabela's has done it in Denver, with outlets at the north and south ends of the metro area. Each store has a different concept, and each pulls sales from different areas.
"I think that's what's going to happen with Ikea, too," Schallert said.
Ikea's Centennial store will pull from the southwestern mountain region, while the new store will serve the Fort Collins area, Nebraska and Wyoming.
"It's an interesting dynamic in the world of retailing when a big retailer like this starts even contemplating this type of move," Schallert said. "Normally what happens like in Portland, Ore., or Seattle, they've got one store.
"Here, if they're thinking about two stores, it's the right customer base and they see the right growth opportunities."
It shows the company isn't afraid the two stores will cannibalize each other's sales, he said. Companies "just aren't doing" this type of retail expansion, he added.
"Ikea wouldn't even be talking about this if they hadn't done their homework and if they weren't significantly confident that this large risk is going to pay off," Schallert said. "When a company does that and leads the way into a marketplace, other companies with less resources will do the same and follow suit."
Unique shopping experience
That appears to be what Broomfield officials are hoping will happen.
Ahrens said the proposed Ikea site is designated for regional retail and other complementary mixed uses, and Ikea will certainly be a major catalyst to increasing economic development goals and will "bring a unique shopping" experience to Broomfield.
Ikea, in a news release, said its proposed store is being incorporated into Broomfield's master-planned Regional Retail Center along the I-25 corridor.
The company notes that the "land contiguous to the potential Ikea store eventually could be developed to accommodate opportunities for ancillary commercial, retail or residential uses."
"We are excited at the opportunity for a potential second Denver-area Ikea store at this location in Broomfield," Ikea U.S. President Lars Peterson said in a statement. "A store in this retail corridor would complement our strong presence established in Centennial and eventually provide customers in the northern part of the Front Range an Ikea store closer to them."
There will be meatballs
Ikea estimates a Broomfield store would bring more than 500 jobs during the construction phase, followed by the hiring of about 250 employees to staff the store once it's complete.
The store in Broomfield "would reflect the same unique architectural design for which Ikea is known worldwide," the company said. It would feature nearly 10,000 exclusively designed items, 50 "inspirational room settings," three model home interiors, a children's play area and a restaurant serving Swedish specialties including meatballs with lingonberries and salmon plates.
Broomfield will be working with Ikea over the next few years to prepare the way for construction, Ahrens said, and with state and local partners to bring multi-modal transportation connections to the store.
"Something could change, but we've already done some things with that land up there to make it amenable for Ikea to move in," he said.
There are also existing incentives for the urban renewal area Ikea is moving into, he said.
As for the future economic impact to Broomfield, Centennial, home to the Denver area's current Ikea store, only offers vague clues.
Centennial officials said that store has been successful, but they can't release sales-tax revenue figures to quantify that success.
"It's part of our code," Centennial spokeswoman Allison Wittern said. "The information is confidential unless it's requested by a court or the taxpayer, which would be Ikea."
"I know the store has done very well since opening," she said. "I think based on the success they're perusing a second store in Colorado."
Jennifer Rios: 303-473-1361, email@example.com or Twitter.com/Jennifer_Rios
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