08 July 2024, Mumbai
Diverting from its previous plans to set up larger outlets in the Delhi NCR region, Ikea aims to introduce a scaled-down store concept in India. These stores will spread across 25,000 sqft, and will be significantly smaller than the retailer’s typical store sizes globally.
Through this move Ikea aims to ensure Indian consumers reach an Ikea location within a 30-minute radius.
Previously, Ikea had been exploring spaces in the range of 70,000 sqft to 100,000 sqft in Delhi NCR malls. However, Ikea’s parent company, Ingka issued a directive to prioritise smaller city-center stores. The retailer is currently negotiating with mall operators for these compact store formats.
Historically known for its expansive warehouse stores spanning 400,000 sqft to 500,000 sqft, Ikea initially entered India with similarly large outlets in Hyderabad, Mumbai, and Bengaluru. The company later experimented with smaller formats, such as an 80,000 sqft store in Mumbai's Worli area and a 72,000 sq. ft. outlet at R City Mall in Ghatkopar, which closed earlier this year due to poor performance.
Globally, Ikea has introduced Planning Studios in cities like Paris, Moscow, Toronto, and New York City, designed to showcase select product categories tailored for urban consumers. It remains unclear whether the new smaller stores planned for India will follow the Planning Studios model.
In addition to its retail initiatives, Ingka Groupis developing two IngkaCentres in Noida and Gurugram, which will feature large Ikea stores alongside other brands. This strategic expansion underscores Ikea's efforts to adapt to evolving consumer preferences and market conditions in India's retail landscape.
