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IKEA to open small stores in major cities

Monday, 12 Aug 2019
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IKEA, the Swedish home furnishings retailer, is planning to open small stores in major cities. The company is planning to open more formats including an ecommerce platform as it aims to reach 100 million customers in near future.

The company had launched its first India store in Hyderabad in August 2018. It has invested around Rs 800 crore so far to set up 4,00,000 sq ft store in Hyderabad which is the biggest IKEA restaurant anywhere in the world with a seating for 1,000 people.

The company had plans to start with an online launch for Mumbai and later offline stores. The move will see smaller outlets, pick up centres and customer service stations across the city. These will be around 50,000 sq ft to 1,50,00 sq ft stores.

Customers will be able to shop online soon in Mumbai in coming months followed by Hyderabad and Pune and then other cities.

The omnichannel and multi-format model is expected to help the company reach out to a younger customer base.

Moreover, land has been acquired in Bengaluru and Gurugram and the company is looking for suitable sites in other cities across the country. It has purchased 10 acre of land in Gurugram and plans to build another 4,00,00 sq ft store with parking area for 1,000 cars.

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