IKEA's presence in New Zealand - may give local retailers a needed wake-up call

The Swedish chain opened its first Kiwi branch in Auckland's Sylvia Park this morning - drawing a massive crowd, although traffic was less affected than expected.

The Warehouse has responded by announced it's reopening its Bargain Shed - a 20-minute drive away.

Forsyth Barr Retail Analyst Paul Koraua says other stores will need to work for their share of the market.

He says it will ultimately mean better products and prices for consumers.