Homemakers Canberra general manager Geoffrey Poole estimated hundreds of jobs would go across the territory and property values would drop in Fyshwick, Hume, Mitchell, Belconnen, Phillip and Tuggeranong as a result of Ikea wielding its market power.

Mr Poole said that as land values fell, government revenue would be reduced, pushing the costs onto ACT residents.

"So the longer term effect is that ultimately every taxpayer in Canberra ... will be affected because the government has to make up their revenue somewhere else," he said.

"It's a quick fix, a quick money grab for the government to shore up the budget."

Ikea country manager David Hood said he understood if small businesses were fearful when a multinational arrived in their market. However he said "we're not here to put anyone out of business'' and hoped the 250 retail jobs created by the store would not come at the expense of other retailers.

"Our primary task is to increase the focus on home furnishings and how people live ... it's not just about selling stuff,'' Mr Hood said.

"So I think the broader picture is that it's not to beat people and adjust the market, it's to increase the focus on home furnishings and people's disposable income going into that.''

Mr Poole said he had taken his concerns to ACT Treasurer Andrew Barr several months ago but had been told the deal was already finished. He said the deal for Ikea had been done behind closed doors, without consultation with the business community and would ultimately be harmful to the ACT economy.

"Every small to medium business owner, every property owner, every ratepayer should be getting in touch with their property council and their Chamber of Commerce," he said.

"They're being hoodwinked into thinking the community's being given a good community asset, but they're not."

Chief minister Katy Gallagher acknowledged the concerns of smaller businesses, but said it was not the government's role to limit competition.

"There is a period of adjustment that needs to happen, but ultimately this is good for every Canberran in terms of access to Ikea products and competition in the retail market. That's not something the government looks to control nor is it something we want to control.''

Canberra Business Council chief executive Chris Faulkes said the arrival of Ikea in the ACT would have mixed outcomes.

"Per head of population we have a very high square metre spread of retail space and that means purchasing power is spread between a lot of places and puts pressure on businesses," she said.

"I think though that competition overall is not a bad thing ... a lot of people travel from Canberra to shop at Ikea in Sydney so it has a particular pull that is different from other retail stores."It may well stimulate spending in Canberra anyway, which is still well below the 10-year average."

Ian Fraser, owner of homewares store Sauvage Urbain, said the arrival of Ikea might affect their business but it was too early to tell.

"In the market we're operating in I think it'll be pretty minimal. Overall I think Canberra's better off to have something like this here than somewhere else - it keeps the money in Canberra," he said.