DESPITE RECENT slowdowns in the construction sector and the property market, the international home furnishings giant Ikea remains confident of a successful start to its maiden venture in the Republic, writes Steven Carroll.

Ikea's 31,800 sq metre store in Ballymun, Dublin, is expected to open early next year. It will employ 600 staff, have a range of over 9,000 products and a predicted first-year turnover of about €100 million.

A recruitment drive to fill 43 management positions for Ikea Dublin began this week and the man who will manage the store, Garry Deakin, says the company will have a lot to offer customers during any potentially hard times.

"Our history shows us that whenever there has been an economic slowdown, Ikea will benefit. This is because we are recognised as a low-price retailer that has a wide range of 9,000 products on offer to the many people."

Deakin has worked with Ikea in England for eight years. He joined the company when the family-owned clothing retailer C&A, where he worked for 16 years, ceased its British operation.

He decided he wanted to continue working in retail and Ikea, which, at that time, had only eight units in Britain, suited his aspirations. It now has 25 stores in Britain, and Dublin will be Deakin's fifth management post since he joined the company.

He recently supervised the successful launch of Ikea's Belfast operation and believes the company's management blueprint will ensure a smooth transition into the southern market.

The management strategy it uses worldwide is based on three principles: the company vision, its business idea and its human resources idea, he says.

"Our founder had a vision to create a better everyday life through home furnishing for many people. Ikea could produce very expensive furnishings for a niche market - we have the ability to do so - but then we wouldn't be catering for the many people.

"Ikea's business idea is that we offer a wide range of home furnishings at prices low enough that many people will be able to afford them. Ikea will never compromise on quality or design. We always have a democratic design and products made to suit all demographics.

"The company's HR strategy offers straightforward hard-working people an opportunity to grow and develop with Ikea, both in work and in their personal lives, by creating an environment where we live up to our three management strategies," Deakin says.

As well as these management principles, Deakin says Ikea offers a "very flat structure" which helps staff to develop while involved with the company.

"If I had my 500 staff together, we would all dress the same and have the same name badge, we don't have any way of knowing who anybody else is, and this is deliberate because we don't want to say that there is any hierarchy in Ikea.

"Big brands often have to adapt and change when they enter a new market but if you took an Ikea worker from Belfast and put them into a Spanish or Russian store, it would be the same experience.

"The range is the same, the rules are the same. It is a formula that seems to work wherever we take it and, because of that, we never doubted that it wouldn't work in Ireland."

Early figures from the Belfast store indicate the Ikea strategy is proving to be very successful in Ireland, with sales 15-20 per cent higher the forecast. A portion of this could be attributed to shoppers travelling to the North to shop, with up to 16 per cent of sales at weekends coming from the Republic.

"The opening of Belfast, if you based it on the spending, visitors and average sales we did in the first week and have continued to do, I would say was a huge success. There were between 1,200-1,500 waiting for us to open, there was no mayhem despite the opening offers and I consider it to have been a very positive Ikea opening. If Dublin can match it, we'll be very happy."

If the Ballymun operation can repeat the early success of Belfast, Deakin sees no reason as to why Ikea might not open a third Irish store.

"I would be surprised if there is not a third. As and when will depend on the success of Dublin. Certainly there are several locations that if you looked at a map you could pinpoint where if Ikea was to open another store in Ireland it might well be here."