IKEA India Assembles Growth: 10% Sales Rise in FY25, Tests New Store Format for Expansion

IKEA’s Indian operations have reported a 10 per cent year-on-year growth as of August 2025, signalling steady progress for the Swedish home furnishings retailer in one of its most dynamic markets. The update was shared by Tolga Oncu, Ingka Retail Manager at Ingka Group, which oversees IKEA stores worldwide.

Oncu said the growth reflects the company’s simplified expansion model in India, which places strong emphasis on cost-consciousness and operational efficiency. He noted that IKEA is tailoring its strategy to local needs, drawing on lessons from pilot projects in different parts of the world. “We will continue to refine and adapt these principles to suit the Indian market, based on the learnings from new format pilots, to make IKEA more accessible and efficient,” he said.

Central to this effort is the testing of a new, smaller store format that integrates seamlessly with IKEA’s digital channels. Unlike its sprawling warehouses, the new concept is designed to be faster to establish, more economical to operate, and easier for customers to access. Alongside thousands of products, the compact outlets also provide planning and advisory services, ensuring that customers continue to enjoy a complete IKEA experience.

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Similar pilots are currently being conducted in the UK, Texas and Poland. Early customer feedback, according to the company, has been encouraging, with visitors appreciating the simplified and more convenient shopping experience. IKEA believes the concept could significantly expand its footprint by helping the brand enter new geographies that would not have been feasible with its traditional large-format stores.

The company expects to draw firmer conclusions on the model’s effectiveness by the end of the year. If successful, the smaller-format stores could become a key element of IKEA’s long-term growth strategy in India, allowing it to serve more cities and reach a broader customer base without compromising on variety or service quality.