IKEA to open first Indian store
IKEA, Sweden-based world’s largest home furnishing major, will open its first Indian store in Hyderabad in July 2018, while the second store will be opened in Mumbai in 2019. The company’s product offering will also be available online.
The company’s strategy also entails entering two other metro cities – Delhi and Bangaluru, post which the operations will be extended to Kolkata, Pune, Ahmedabad, Surat, Chennai, Chandigarh, among others. IKEA’s large format stores span 350,000-400,000 square feet. However, given the steep real estate prices and space constraints in metros such as Mumbai and Delhi, the company is considering opening small format stores to complement its large format ones.
IKEA has hired 150 employees for assembling products for its Hyderabad store. Out of 10,000 products available globally, the company will offer nearly 7,500 products in this outlet. IKEA is expected to be a major beneficiary of the 100 percent FDI in single brand retail allowed by the Indian government.