IKEA To Set Up Compact Stores For Expansion In Smaller Cities

New Delhi: Swedish home furnishings retailer IKEA is taking a "huge shift" in its India growth strategy by deciding to set up compact stores in smaller cities with a view to become more accessible to customers, said a company official.

IKEA, currently in the second phase of its growth in India, plans to expand through a network of small-format stores tailored to specific locations and catchment areas. These stores could be as compact as 10,000 square feet, making them suitable for neighbourhood shopping malls, IKEA India Country Expansion Manager Pooja Grover told media.

Further, she said these small-format stores will help IKEA to expand more quickly, remain agile, and establish a presence in malls and on high streets. She added that IKEA is also exploring partnerships with real estate developers to support this new concept. Although these stores will have a limited physical display of IKEA's products, they will be equipped with a digital catalogue that allows customers to explore the brand's range of around 7,000 products and place orders.

Multiple delivery options will be available, including home delivery, pickup at a collection point, or pickup by a third party, she added. "We are trying to integrate various aspects and offer different kinds of experiences across different formats... From a size point of view, this is a huge benefit for us in India as well, where we will be more accessible to many people," said Grover, adding that "this size option opens up a lot of accessibility" for IKEA.