Ingka Holding BV has started construction on a $1.2 billion shopping mall in Shanghai that the company says is its single biggest investment. The mall will be Ingka’s fifth in China, will span 430,000 sq m and house more than 300 local and foreign merchants, along with an Ikea store.
After it opens in 2022, the mall, termed an “Ingka Center,” will also have office space for 3,000 Ikea employees, becoming one of the company’s biggest worldwide bases, according to a company statement.
Ingka’s mega-investment arrives at a time where there is growing concern that Chinese consumers are pulling back in the face of a slowing economy and the ongoing US-China trade war. Household expenditure has gone down and savings have gone up, in midst of pricier housing taking a toll.
Ingka stated that the project marks a “new era” for the company’s mall business. The company already has three malls in Beijing, Wuhan and Wuxi open for business, and another two malls under construction in Xi’an and Changsha.