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Updated February 22nd, 2024 at 22:05 IST

Ikea to shuts down its store in Mumbai’s R City Mall

The company aims to develop the existing Ikea Navi Mumbai site into a retail destination and increase its physical presence in Pune

Reported by: Business Desk
Bengaluru woman sues Ikea
Bengaluru woman sues Ikea | Image:Ikea
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Ikea shuts down store: Ikea, the furniture retailer, is set to close its store in Mumbai's R City Mall by the middle of the year as part of a strategic move to consolidate operations. The decision is driven by concerns about the viability of the small-format store, citing challenges in layout, design, and location that hinder the complete Ikea experience for customers. 

Despite the closure of the R City store, Ikea remains committed to expanding its presence in Mumbai, with plans to explore new omnichannel formats and enhance its physical footprint in Pune. The larger big-format Navi Mumbai store, covering 5 lakh sq ft, remains unaffected and operational.

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Shift in Strategy

The company aims to develop the existing Ikea Navi Mumbai site into a retail destination and increase its physical presence in Pune, emphasizing Mumbai's significance as a key market in India. Ikea currently operates three big-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with two small stores in Mumbai. Expansion plans include new stores in Delhi-NCR and an Ikea-anchored shopping center in Gurugram.

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To address the impact on employees, Ikea assures affected workers at the R City store of "equal opportunities" for their next assignments in Mumbai and other markets, ensuring a seamless transition. The company expresses optimism that the affected employees may continue their journey with Ikea. This strategic decision aligns with Ikea's vision for a leaner and faster retail business, emphasizing its commitment to values and culture.

 

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Published February 22nd, 2024 at 20:56 IST

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