 "Ikea embarks on a bold expansion in India, targeting Delhi-NCR with smaller stores and increased online presence by 2025.")
Ikea plans to expand its operations in India, focusing on new markets like Delhi-NCR. The company aims to open smaller stores ranging from 30,000 to 70,000 square feet in areas adjacent to its existing large stores. Starting with online sales in early 2025, Ikea will launch its first physical store in Gurugram by 2026. Currently, Ikea operates large stores in Hyderabad, Navi Mumbai, and Bengaluru, with two city centers in Mumbai. As part of its phased expansion, Ikea emphasizes local sourcing to manage costs, addressing challenges such as high land prices and interest rates. The brand sees significant potential in India and aims to strategically grow its presence in six key cities.
Global furniture giant Ikea is gearing up for an ambitious expansion in India, as highlighted by its CEO Susanne Pulverer. With plans to introduce smaller-format stores ranging from 30,000 to 70,000 square feet, the company aims to strengthen its presence in both existing and new markets. This initiative is part of Ikea’s second phase of growth, following the successful launch of its first four stores in key locations.
In the upcoming phase, Ikea is setting its sights on the Delhi-NCR region, planning to kick off online sales in early 2025, followed by the opening of its first physical store in Gurugram by 2026. Currently, Ikea operates large-format stores in major cities like Hyderabad, Navi Mumbai, and Bengaluru, along with two smaller city centers in Mumbai.
Pulverer acknowledged the challenges posed by high land prices and interest rates in India but remains committed to adapting Ikea’s model to suit local conditions. The company is focused on sourcing more local products to improve profit margins, allowing for continued growth despite financial hurdles.
Ikea’s strategy includes a careful selection of six priority markets: Hyderabad, Mumbai, Bengaluru, Delhi, Chennai, and Pune. The plan is to gradually penetrate adjacent cities while ensuring a robust logistics network supports the expansion.
The company is also investing significantly in its infrastructure, with Ingka Centres laying the groundwork for a new facility in Noida under the Lykli brand. This center will be completed by 2028, bringing additional retail opportunities to the region.
With FY23 revenues reaching Rs 1,768 crore, Ikea’s expansion illustrates its confidence in the Indian Market‘s potential. As it continues to learn from local consumers, Ikea is poised for a successful future in India.
Tags: Ikea expansion, furniture retail, India Market, Susanne Pulverer, small format stores, online sales, Gurugram, Delhi-NCR, Ingka Centres, local sourcing
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What are Ikea’s plans for investments in India?
Ikea is planning to invest more in India by opening new stores and expanding its presence in the country. -
Why is Ikea focusing on smaller stores?
Ikea wants to open smaller stores to make it easier for people to shop in busy city areas, where large stores are not always possible. -
Where will the new Ikea stores be located in India?
The new smaller stores will be located in urban areas and cities across India, making it more convenient for customers to visit. -
How will the smaller stores differ from the big ones?
The smaller stores will offer a selection of Ikea products but might not have all the items found in larger stores. They will focus on essentials and popular items. - When can we expect to see these new Ikea stores in India?
Ikea plans to begin opening smaller stores in India soon, but specific dates haven’t been announced yet.
