23 February 2024, Mumbai
IKEA has announced the closure of its store located in R-City Mall in Mumbai, citing a failure to meet the company's expectations regarding its Swedish home products and furniture retail experience.
Spanning 72,000 sq ft on the third floor of the mall, the store commenced operations in July 2022 as part of IKEA's initial venture into smaller format stores in India, designed to enhance its omnichannel approach.
According to IKEA, this strategic move aligns with their vision of streamlining and accelerating retail operations in the country, emphasising the pursuit of a leaner business model.
Emphasising on its commitment to the Mumbai market, despite the closure, the company says, the store’s closure allows it to consolidate Mumbai operations to IKEA Worli, IKEA Navi Mumbai and online presence while exploring newer opportunities for future growth.
Further it expressed intentions to transform the Navi Mumbai site into a thriving retail hub.
In light of the closure, IKEA assured that all over 100 employees from the R-City location will be retained and transferred to other operational centers across Hyderabad, Bengaluru, and New Delhi. The company also disclosed plans to commence online sales in these cities later in the year, further underscoring its dedication to its workforce and its strategic expansion goals.
