Planning expansion in India, eyeing omni-channel approach: IKEA CEO

New stores in India: IKEA, the Swedish multinational, entered the Indian market five and a half years ago with its first store in Hyderabad, aiming to prove its viability. Global CEO Jesper Brodin said while talking to CNBC TV18 that the experience has been phenomenal, with massive interest prompting subsequent store openings in Mumbai, Bengaluru and Delhi.

Brodin revealed plans for IKEA to establish a presence in all major cities and expand into an omni-channel context to reach a wider audience. A new facility in Gurugram is under construction, set to be more than just a store but a shopping centre.

Earlier, the company had reported to shut down its store in Mumbai’s R City Mall by the middle of the year, in a strategic move. 

IKEA's long-term plans involve key investment, with discussions ongoing for further expansion and investment decisions expected by 2024. Brodin stressed on the need for patience, as building large stores and industry capabilities takes time.

IKEA's small store strategy, initiated in 2018 to bring stores closer to city centres, has been a key highlight. While some stores have closed due to location challenges, IKEA will be establishing smaller stores in prime locations.

Looking ahead, IKEA sees potential for more than 10 stores and aims to stimulate a movement rather than dominate the market. With an investment of Rs 10,500 crore, IKEA plans to enhance its online capabilities and explore new customer engagement strategies to accelerate its growth.