Ikea launches compact-format stores for urban neighborhoods and smaller cities

Marking a significant shift in the brand’s growth journey in India, Swedish home-furnishing giant Ikea is launching compact-format stores designed for urban neighborhoods and smaller cities.

The company is currently in the second phase of its India rollout, with a significant emphasiss on agility and faster market penetration, explains Pooja Grover, Country Expansion Manager, Ikea India These smaller-footprint stores—some as compact as 10,000 sq ft—will slot into neighborhood shopping malls and prime main-street locations.

Each of these outlets will offer access to IKEA’s full catalog of around 7,000 products via in-store digital kiosks. Customers can place orders on the spot and choose home delivery, neighborhood pickup points, or third-party collection services for maximum convenience.

These small-format stores will enable IKEA to scale more rapidly, stay nimble, and establish a presence in malls and high-traffic districts, adds Grover. The company is also in talks with real-estate developers to support this new retail model, he informs.

While Ikea continues to focus on its six core markets including Hyderabad, Bengaluru, Mumbai, Delhi NCR, Chennai, and Pune, it has begun scouting opportunities in Tier II and Tier III cities.

The company is gearing up to open new outlets in Gurugram, Noida, Chennai, and Pune. Earlier this year, it also launched online operations in Delhi NCR and nine other cities, complementing its three large-format stores (each over 430,000 sq ft) and its 80,700 sq ft city store in Mumbai.