Ikea, a global retail brand, unveiled a new branch in Shanghai on Thursday, making the city the first in Asia with three Ikea outlets.

"We can't rule out the possibility of having one more store in the city if we find a suitable site, since it is a city with a population of more than 20 million," said Zhu Changlai, president of Ikea Retail China.

The new store, part of Ikea's expansion strategy in the Chinese retail market, cost $137 million and occupies an area of 55,000 square meters in the city's Baoshan district, Zhu said.

Ikea has set up 13 stores in 11 of China's cities over the past 15 years, with six in the Yangtze River Delta region.

"We will soon build a store in Hangzhou, capital of Zhejiang province, to realize plans of launching three projects annually in China," Zhu said.