Swedish furniture retailer IKEA, under its new strategy, targets to open small city outlets along with its mega format stores in India. Online channels will support these outlets. The decision has been taken in the wake of changing consumer behaviour in India.
In 2013, the company received the government’s approval for its investment worth Rs 10,500 crore for opening stores in India. IKEA had envisaged setting up ten furnishing and home-ware stores as well as allied infrastructure in a period of 10 years in India. It has also planned to open 15 more stores.
Currently, the company has set up three mega format stores in Hyderabad, Navi Mumbai and Bengaluru. IKEA India CEO Susanne Pulverer said the Covid-19-induced slowdown impacted the company’s investment plan of opening stores in India.
She further said IKEA is still in the investment phase of its approved FDI, and further investments have not been lined up, although the furniture retailer is committed to the Indian market in the long term.
She stated that the company aims to go physical and online together regarding online expansion. It has done some pilots in the three cities in Gujarat online only. She further informed that the current contribution from the online channel to the overall sales is around 30%, having increased during the pandemic and staying high.

Founded by Ingvar Kamprad in 1943, the Dutch-based multinational conglomerate designs and sells ready-to-assemble furniture, kitchen appliances, home accessories etc. It has been the world’s largest furniture retailer since 2008.