Winnipeg's retail sector surviving Ikea's arrival: experts

One year after Ikea opened its Winnipeg store, business experts say the local retail sector appears to have survived the Swedish furniture giant's presence in the city.

Thousands of people streamed into the Winnipeg Ikea store on its opening day, Nov. 28, 2012.

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At the time, many local retailers were worried about how Ikea's arrival in the city would impact their sales.

But Kelley Main, an associate professor with the Asper School of Business at the University of Manitoba, says she has not heard of any local furniture or related businesses closing in the past year.

As well, retail sales in Winnipeg are up by more than three per cent in the past year, which is higher than the national average.

"The consequences aren't obvious yet. They might still be to come, but it looks like most people are still in business," she told CBC News.

"There's been lots of other large-scale stores that have moved in, so Target has moved in, Wal-Mart has gotten bigger," she said.

"So perhaps there is a little bit more room in the competitive landscape for IKEA to be here as well, and still have some of the local independent retailers survive and prosper."

Dave Angus of the Winnipeg Chamber of Commerce agreed that Winnipeg could take in even more large retailers, saying the city has reached a critical size to absorb them.

"In fact, we seem to spend more money. You know, we saw it with the Jets, right? All of a sudden, all these people have money," he said.

"So I think that's what happens, is that people will spend more money here in Winnipeg as opposed to outside of Winnipeg."