Ikea to open both small and large format stores in major cities of India

On Thursday, Ikea will open doors for the first small-format city store in Worli, Mumbai, with the intention of “getting even closer to the many people of Mumbai”. This format allows Ikea to open smaller stores in limited. The company said the available spaces in urban areas make it convenient for buyers to experience the brand. The Worli store, for example, is 80,000 square feet, as opposed to Ikea’s typical big box store that spans between 400,000 – 500,000 square feet. Globally too, Ikea operates such stores in Paris, Vienna and Shanghai.

The retailer plans to open four smaller stores in Mumbai by 2025 – in addition to its larger format stores in Navi Mumbai that opened late last year. She will also launch a small-town store in Bengaluru.

“Big cities will easily take a combination of one or two big stores, Mumbai probably won’t have another big store in Mumbai due to availability of space. But I can easily say that other big cities will probably have one or two big stores , and then easily there will be four or five smaller stores in the city, and an online approach,” Ikea India chief financial officer Preet Dhupar told Mint. Interview.

These also include stores announced by Inca Centers—the parent company’s shopping center business that intends to open two Ikea-anchored centers in Gurgaon and Noida. These are essentially large retail destinations with Ikea as the anchor tenant along with other fashion, food and accessories brands.

Peter Betzel, CEO and CSO (Chief Sustainability Officer), Ikea India, said, “Today marks a major milestone as we add a new customer meeting point in Mumbai, our first all-encompassing market for Ikea in India.

He said this omnichannel store format enables Ikea to make home goods more accessible.

Out of 8,000-9,000 products available at Worli stores, over 2,200 will be available for direct pickup and the rest will be home delivered.

Ikea workers as well as various digital tools will assist customers in placing orders for larger items that are not available for takeaway. The retailer said the store will offer three-room sets and a host of inspirations focused on small space living, space-saving hacks, and other home needs.

Betzel said Ikea remains “invested” and “committed” to India.

Dhupar declined to share the investment behind the small format store. Smaller stores are leased as opposed to larger stores where land parcels are purchased by Ikea.

In India, Ikea has an online presence in Hyderabad, Mumbai, Bengaluru, Surat, Ahmedabad and Vadodara. It has two major stores in India – one each in Navi Mumbai and Hyderabad. It recently announced the launch of its first Ikea-anchored meeting place called Livt Gurugram.