IKEA's Dynamic Expansion Plans in India: Growth with Small Stores Strategy
IKEA aims for over 10% sales growth in India by FY25, leveraging a blend of small and large-format stores. Despite recent losses, the company prioritizes affordability and local adaptation. IKEA plans extensive expansion to cater to India's vast population, with high expectations for future growth.
IKEA, the renowned Swedish furniture giant, is set to boost its sales in India by over 10% in the financial year 2025, according to Tolga Öncü, Ingka Group Retail Manager. As part of its expansion strategy, IKEA plans to establish a network of small-format stores alongside its traditional large 'Blue Box' outlets.
Despite facing a widened total loss of Rs 1,299.4 crore in FY24, IKEA's revenue grew to Rs 1,809.8 crore, marking a 4.5% increase. Öncü emphasized IKEA's strong growth trajectory in India, stating that after seven years, the company is beginning to see significant market catch-up, despite earlier setbacks due to the pandemic.
Öncü acknowledged the necessity of offering low-priced products to penetrate India's value-conscious market effectively. The company is launching several small stores, measuring 2,000 to 5,000 sq feet, to enhance its reach beyond metro cities, paving the way for IKEA's accelerated growth in the vast Indian landscape.
(With inputs from agencies.)
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