18 August 2025, Mumbai
Swedish home decor and furniture giant IKEA has opened a new 15,000 sq ft city store in a mall in West Delhi and plans to open similar small-format stores in other prime locations like Lucknow and Chandigarh.
IKEA is pursuing an omnichannel strategy in India, says Patrik Antoni, CEO, IKEA India. This approach combines large-format stores on the city outskirts with smaller city stores in urban centers, all supported by a robust online presence. This allows IKEA to be closer to its customers, a need driven by the shift in consumer behavior toward convenience.
The company's online sales currently account for about 30 per cent of its total revenue, which was Rs 1,852.7 crore in FY24. Antoni expects this share to grow, but he also emphasizes on the importance of the physical store experience. IKEA has been sourcing from India for five decades and currently procures products worth around €400 million for its global operations, making India one of its top 10 sourcing markets. The company aims to increase local sourcing for its Indian retail operations from the current 30 per cent to 50 per cent within the next five years, reaching that target by 2030. This will be achieved by working with its purchasing teams and leveraging increased volumes from its expansion plans.
Despite challenges like high property rentals, the overall business case in India is favorable due to lower operational costs, says Antoni. IKEA is focusing on making its products more affordable to attract a higher number of visitors, he notes. The company believes. India's large cities offer a strong potential for high footfall and customer conversion.
