IKEA Launches Compact 10,000 sq ft Stores to Cater to Smaller Markets
Furniture giant IKEA is set to transform its retail strategy in India by introducing smaller, compact-format stores aimed at enhancing accessibility for customers. This shift comes as part of the company’s ongoing expansion efforts in the country, where it plans to establish a network of stores tailored to the specific needs of various locations. These new outlets, which could be as small as 10,000 square feet, will be strategically placed in neighborhood shopping malls and high street areas, according to Pooja Grover, IKEA India’s country expansion manager. This innovative approach is expected to make IKEA’s offerings more reachable to a broader audience.
New Store Format and Accessibility
IKEA’s move to smaller store formats marks a significant change in its operational strategy. The compact stores will feature a limited physical display but will provide customers with access to IKEA’s extensive catalogue of around 7,000 products through digital platforms. This means shoppers can browse the full range of items online while visiting the smaller stores. Customers will have the flexibility to order products for home delivery or pick them up at designated collection points, as well as utilize third-party services for their purchases. Grover emphasized that this new size option will greatly enhance accessibility, allowing the company to reach more customers in various regions across India.
The company is currently focusing on six key markets: Hyderabad, Bengaluru, Mumbai, Delhi NCR, Chennai, and Pune. However, it is also exploring opportunities in tier II cities for future growth. This strategic expansion is designed to cater to the evolving shopping preferences of Indian consumers, who increasingly seek convenience and accessibility in their retail experiences.
Current Presence and Future Plans
As of now, IKEA operates three large-format stores in India located in Hyderabad, Mumbai, and Bengaluru, along with a city store in Mumbai. The company has plans to open two additional stores in Gurugram and Noida. In addition to physical retail expansion, IKEA has recently launched online sales in Delhi-NCR and nine other markets to support its growth strategy. This dual approach of physical and online retail is aimed at providing customers with a seamless shopping experience.
IKEA’s commitment to expanding its footprint in India is further underscored by its ongoing discussions with real estate developers to support the new compact store model. The company aims to establish a presence more quickly and efficiently, adapting to the local market demands and consumer behaviors.
Investment and Government Collaboration
IKEA’s journey in India began in 2013 when the Indian government approved its foreign direct investment (FDI) proposal of ₹10,500 crore to open ten stores over a decade. This initial investment has laid the groundwork for the company’s ambitious expansion plans. Additionally, Ingka Centres, part of the Ingka Group that oversees IKEA’s retail operations, is investing €1 billion to develop two retail destinations in Gurugram and Noida under its Lykli brand.
The company also opened its first Plan & Order Point in Bengaluru, a 740-square-meter space designed for personalized consultations and planning services. This initiative reflects IKEA’s commitment to enhancing customer engagement and offering tailored solutions for home design. Earlier this year, IKEA India CEO Susanne Pulverer stated that the company is targeting profitable growth and is in discussions with the government to secure approvals for its next phase of foreign direct investment.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
