Ikea’s new strategy: small stores, mega stores, online channel coming soon in India

Swedish furniture retailer IKEA is planning to open stores in small towns alongside its standard mega stores in India, supported by an online channel. The company will adjust its strategy in the wake of changing consumer behavior, according to a senior company official quoted by the PTI news agency.

In 2013, the company received government approval for its Investment of 10,500 crore in opening its stores in India. It provided for the installation of 10 furniture and homeware stores and allied infrastructure in more than 10 years in the country. Simultaneously, it planned to open 15 more stores here.

So far, IKEA has set up three mega-format stores in Hyderabad, Mumbai, Bangalore and two urban centers in Mumbai.

In an interview with PTI, IKEA CEO Susanne Pulverer said that the company’s expansion plans in the country have slowed down a bit during the Covid-19 pandemic, but the company is also learning from the first market it opened.

She said the organization needs to be close to where people are, so smaller formats are relatively large for the Indian retail market.

There will also be the Omni channel along with the smaller formats where people can come, plan and get services for home decor, she said, adding that IKEA is still in the investment phase of its approved IDE and other investments have not lined up, though. the furniture retailer is committed to the Indian market for the long term.

“According to us, we’ll have a lot of stores and an Omni channel in India because we see that’s the future. The combination, and how many, in what year, I’m not ready to share all that information yet. We’re still working on We want to go physical and online. together,” she said, quoted by the PTI.

Talking about his online sales, he said that the current combination of the online channel with global sales is around 30%, having increased during the Covid-19 pandemic and remaining high.

IKEA is currently offering products online through its website or app to its customers in Bangalore, Hyderabad, Mumbai, Pune, Ahmedabad, Surat and Vadodara.

IKEA operator will invest more 7,000 crore in India

Ingka Centres, part of Sweden’s Ingka Group, which also manages Ikea retail stores, said it will invest €900 million (about 7,266 crore) to build two mega malls in Delhi-NCR.

The company also inaugurated an investment of €400 million ( 3,500 crore) Ingka Center in Gurugram which will be built in the second half of 2025. This will be followed by a similar center in Noida.

The 1.7 million-square-foot Gurugram center will house an Ikea store, other retail stores for global and local brands, educational entertainment activities, a food park and 320,000-square-foot commercial offices spread over nine floors, the company said. company. The Ikea store will be spread over 250,000 square feet and will offer over 9,000 home decor products. The company is targeting an annual turnover of 20 million in the Gurugram store.

The Noida center, however, will take some time to develop, the company said, without giving a time frame.

Ingka Centers operates 45 shopping centers in 15 countries to meet the needs of 370 million visitors each year with products from over 3,000 brands.

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