NEW DELHI: Six years after launching its first store in Hyderabad, Swedish furniture giant IKEA has entered the northern market by introducing online delivery services across Delhi-NCR and nine satellite cities, including Agra, Prayagraj (Allahabad), Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana, and Varanasi. Starting March 1, customers in these regions will have access to IKEA’s extensive range of over 7,000 products.
“As we continue to strengthen our omni-channel growth in the country, this launch in Delhi NCR and other markets will be a strong foundation for our future growth in the region,” said Susanne Pulverer, CEO & Chief Sustainability Officer, IKEA India.
Ingka Centres, part of the Ingka Group that operates IKEA retail, is investing about 1 billion Euro to establish two new centers under the 'Lykli' brand in Gurugram and Noida. The Gurugram center is set to open in 2026, followed by Noida in the subsequent years. Additionally, IKEA plans to open smaller retail outlets in Delhi to cater to the local market.
Currently, IKEA operates stores in Hyderabad, Mumbai, and Bengaluru, with online delivery available across 62 districts in Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Gujarat. The company’s next phase of expansion includes opening physical stores in Chennai and Pune, followed by smaller-format stores and a continued focus on its omni-channel strategy.
Pulverer highlighted IKEA’s commitment to further investments in India, with profitability expected post-expansion. In 2013, the Indian government approved IKEA’s FDI proposal of ₹10,500 crore to set up 10 stores and allied infrastructure over a decade.
“We are in dialogue with the government. The investments which we committed are booked up with the two big investments in Noida and Gurugram," she added.
Ikea India reported a loss of nearly 1,300 crore in financial year 2023-2024, as per a filing with the Registrar of Companies. The company’s revenue from operations rise by 4.5% to Rs 1,810 crore for the financial year ending March 31, 2024, slowest growth in six years.
Bhavana Jaiswal, IKEA India’s e-commerce head, emphasised the importance of the northern Indian market, calling it the largest home furnishing market in the country. “We expect our entry to significantly boost sales,” she said. Currently, 30% of IKEA’s sales in India come from online channels, with the remaining 70% from offline stores.
Jaiswal anticipates a 25-30% growth in online sales post their entry into the Northern market, with the potential for online contributions to exceed 40% pan-India in the future.
Jaiswal attributed the slower sales growth in FY 2023-24 to the lack of new store openings. “Last fiscal year, we didn’t open any new stores, which impacted growth compared to FY 2022-23 when we launched stores in Bengaluru and Worli (Mumbai). We are in a growth phase, and as new stores open, we expect a surge in sales, followed by stabilization,” she explained.
To support its expansion in northern India, IKEA recently inaugurated its first central distribution center in Gurugram. The 180,000 sq. ft. state-of-the-art facility will support both e-commerce operations and the upcoming large-format stores in Gurugram and Noida.