Swedish home-furnishing giant Ikea is accelerating its expansion in Delhi-NCR, rolling out a small-format store and e-commerce services from March 1. The retailer will offer online deliveries in Delhi and nine additional cities, including Agra, Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana, Prayagraj, and Varanasi.
Ikea’s move aligns with its broader strategy of combining large retail stores, small outlets, and online sales to tap into India’s growing home-furnishing market.
Strengthening Logistics & Future Investments
To support its e-commerce push, Ikea has set up a 180,000 sq ft central distribution center in Gurgaon in partnership with Rhenus Logistics. This facility will streamline next-day delivery services across most stock-keeping units (SKUs) in Delhi-NCR.
Additionally, Ingka Group, Ikea’s parent company, is investing in two mixed-use shopping malls in Noida and Gurgaon, each anchored by an Ikea store. The Noida centre will open by 2028 with an investment of ₹5,500 crore, while the Gurgaon mall is set to open next year, with an investment of €400 million (~₹3,500 crore).
Delhi: A High-Priority Market for Ikea
Susanne Pulverer, CEO & Chief Sustainability Officer, Ikea India, emphasized Delhi’s importance, stating:
“Delhi is our top-priority market—it is the biggest home-furnishing market. We are working towards an omni-channel strategy to cater to the demand.”
Currently, 30% of Ikea’s India sales come from online channels, and this is expected to rise with its Delhi-NCR expansion.
Ikea’s Future in India: Phase Two of Expansion
Since its India debut in 2018 with a Hyderabad store, Ikea has established three large-format stores and one small-format store. The company now plans a “second phase” of investment, focusing on new regions like Chennai and Pune while strengthening its presence in Bangalore.
“We committed ₹10,500 crore in our first phase, which included major projects in Gurgaon and Noida. Now, we are planning a new wave of investments,” Pulverer stated.
Exploring Quick Commerce (Q-Commerce) & Faster Deliveries
With India’s growing demand for ultra-fast deliveries, Ikea is assessing q-commerce strategies to shorten fulfillment times. While no official decision has been made, next-day deliveries will be available across most Delhi-NCR orders.
Financial Performance & Profitability Goals
In FY 2024, Ikea India reported revenues of ₹1,852.7 crore, a 5.12% increase from the previous year. However, losses widened from ₹1,134.3 crore to ₹1,303 crore due to ongoing investments.
Despite this, Pulverer reaffirmed:
“We are still in the investment phase, but we are moving towards profitability as per our long-term strategy.”
With Delhi-NCR as a key driver, Ikea is poised for stronger market penetration, higher e-commerce sales, and an expanded physical retail presence in India.
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