Swedish furniture retailer Ikea has decided to discontinue its small-format store in Mumbai’s RCity Mall by mid-2024 over commercial non-viability and infrastructural limitations that restricted showcasing its full range. Operations will be consolidated at its Worli outlet to optimize regional presence.
As per some reports, Ikea can open a new outlet in Pune, soon.
Inadequate Customer Experience
Ikea highlighted that the 70,000 sq. ft Ghatkopar RCity Mall store opened in 2022 could not effectively recreate the quintessential Ikea experience for visitors given space constraints that limited products on display and hindered store design flexibility crucial for the brand.
Hence, despite recent launch, the company feels pulling the plug will allow more targeted allocation of investments in a key market like Mumbai where its larger Worli and Navi Mumbai outlets still operate.
Omnichannel Focus
Ikea emphasized that shutting the RCity store complements its strategy of deepening penetration in Mumbai through varied retail formats beyond just brick-and-mortar presence.
This encompasses boosting online commerce, transforming the Navi Mumbai property into a holistic shopping destination alongside showroom, plus evaluating potential new physical stores of appropriate size capable of elevating customer engagement.
Employee Rehabilitation Assured
However, taking care of its potentially impacted employees remains Ikea’s foremost priority during the restructuring, with the company promising opportunities to continue working within the Ikea family.
Compassion will lead the transition process for staff at RCity, underscoring Ikea’s commitment to be a responsible organization even during strategic business reorientation to align with commercial compulsions.
