Key Highlights :
IKEA to launch large-format stores in Chennai and Pune as part of new investment phase.
Ingka Centres to invest more than ₹7,500 crore in Gurugram, Noida mixed-use projects maturing in 2026 and 2028.
Omnichannel retail-driven strategy continues, with big stores, small format stores, and online channel bundled together.
Key Background :
IKEA joined India in 2018 with its first large-format big-box store in Hyderabad, supported by a government-sanctioned foreign direct investment pledge of ₹10,500 crore. It then expanded to Navi Mumbai and Bengaluru and took a solid position in three top metropolitan areas. The expansion phase also included the company testing smaller city-store formats in a bid to build a closer connection with city shoppers.
The company’s omnichannel strategy incorporates Flagship megastores and smaller stores with digital environments. Not only does it add access but also caters to India’s multicultural consumer segments, ranging from individuals requiring an experiential showroom experience to those desiring fast, digital transactions.
In the National Capital Region, growth of IKEA from the retailing point of view is supplemented by Ingka Centres’ investment for the development of mixed-use complexes. Gurugram and Noida new plans will have office space, entertainment space, and shopping space with IKEA stores as an anchor. The schemes worth more than ₹7,500 crore of investments are for developing multi-use space for working purposes, other than lifestyle use.
With the first phase of investments over, IKEA is set to pump in fresh funds into Chennai and Pune. While timelines as well as definite budgets are being discussed, the project indicates a phased move into newer high-growth city clusters away from its current metro focus.
The second stage, according to the company management, would not only grow its geographical footprint but also enhance local procurement and supply chain efficiencies. This would enable affordable targets, one of the elements necessary in order to achieve price-sensitive yet aspirational customer base in India.
Over the next few years, IKEA’s India growth strategy is protected but aggressive balancing massive infrastructure increases with versatile store formats. With its fortified omnichannel role, the organization will increase markets further without compromising its strengths of quality, design, and price leadership, while retaining its position in India’s emerging home-furnishing market.
About the Author
Abhishek Roy
Abhishek Roy is a Managing Editor at Business Minds Media India.