Swedish furniture giant Ikea has announced that it will open its first stores in South America under a franchise agreement with Chilean retailer Falabella. The group is aiming to open at least nine stores in Chile, Colombia, and Peru over the next ten years, and will sell through online channels in the three countries. According to Ikea, Chile, Peru, and Colombia have a combined population of almost 100 million people and a market potential for home furniture of more than €8bn.

Ikea has been responding to slower sales growth by pushing into new markets such as India, as well as developing smaller city-centre formats; it is is also investing in online services to adapt to the surge in e-commerce.