IKEA plans to set up 40 stores in different formats across India. The retailer opened its first store in Hyderabad last year, nearly five years after receiving the government nod to invest around Rs 10,500 crore to open 25 retail stores. IKEA, known for its vast network of self-service, out of-town mega stores measuring 4-5 lakh sqft, will launch stores sized 50,000-1,50,000 sqft. This will enable it to penetrate deeper into the domestic unorganised furniture market and take on local retailers, including Urban Ladder, Pepperfry, Godrej and Fabindia. To begin with, the company, which currently operates its maiden store in Hyderabad, has located two sites in Mumbai for such stores.
However, the retailer will first launch its online shopping services in Mumbai, before opening physical stores. The Netherlands-headquartered retailer will also open small neighborhood stores as a part of its overall strategy to reach younger customers.