Estonia, EU – Baltic States, Investments, Latvia, Markets and Companies

The possible locations considered were Tallinn and Tartu in Estonia and Riga in Latvia.

Analysing the business opportunities and deficiencies of the three cities, Riga was picked as the most likely location.

Ikea's local franchise company has estimated that expansion to one country should not take more than two and a half years. They wish to expand across the Baltic States in five years.

The estimated cost of expanding to Latvia is 150 million dollars.

The main reason why Ikea stores have not been opened in Estonia and Latvia yet is fears that the investments may not repay within a reasonable period of time due to the market's small size and relatively conservative tastes of consumers.

Ikea's franchise company Felit UAB started its activities in March 2013 in Baltic countries. The first Ikea shopping centre in Baltics opened in August last year in Vilnius near the airport.