Ikea’s second store in India may be in Uttar Pradesh. The furniture and home accessories company, based in Sweden, proposes to invest more than Rs 5000 crores in the state in the coming years in a mix of large and small city centre format stores across the state, which would be accompanied by an e-commerce platform in the coming months.
A large format Ikea store will also be set up in Noida. The store will have an estimated investment of Rs 1000 crores. It will employ around 1000 co-workers directly and another 1000 indirectly across the value chain. Hyderabad houses Ikea’s first store in the country.
A typical Ikea store is an average 4,00,000 sq ft in size. With such a large space difficult to come by within a city, the company is looking to change its model and develop smaller stores, either standalone or within malls. By 2030, the company hopes to have a presence in at least 49 Indian cities.
A 5,00,000 sq ft store will open in Bangalore in summer 2020 and is expected to attract more than seven million visitors a year. Ikea expects the percentage of online sales in India to be significantly higher than anywhere else in the world.