At a time when several retail firms pruning their store network in the country following suboptimal margins and escalating realty cost, Swedish home furnishing company IKEA plans to set up its largest Indian retail store in Mumbai expecting at least 5 million annual visitors.
The foreign furniture retailer, which purchased its first land parcel—a 23 acres site along the Thane-Belapur road in Navi Mumbai, plans to have a 4 lakh sq.ft store at the new site.
This step is yet another confirmation of IKEA’s large expansion plans in India. Meanwhile, the company is also evaluating suitable sites in the cities of Bangalore, Mumbai and Delhi and at the national capital region to set up retail stores taking the total number of stores to 25 in India by 2025.
“Maharashtra is one of the most important markets for IKEA. Along with setting up retail stores, we will expand our supplier landscape and grow local sourcing as much as possible,” said IKEA India CEO Juvencio Maeztu.
Each IKEA store will employ 500-700 co-workers directly and another 1500 indirectly, engaged in providing services. We are committed to having 50 per cent women in our organization at all levels and giving equal opportunities to all. We will bring a unique shopping experience through our inspiring stores offering affordable home furnishing products for the many people in Mumbai, Maeztu added.
“We are very happy that we will soon see an IKEA store in Mumbai. IKEA will bring best business practices, many employment opportunities, infrastructure development and contribute to the growth of the retail sector in the state,” said Apoorva Chandra, secretary (industries), Maharashtra.
We believe that IKEA will work as a catalyst in our development plans. The government is committed to provide the necessary support to IKEA for its future expansion plans in the state, he added.
IKEA, which has been sourcing from India for the last 30 years, also said it plans to double its sourcing volumes by 2020. Through it 50 suppliers, IKEA today employs 45,000 people directly and about 400,000 in the extended supply chain at present. The Mumbai site is its second retail store in India.
BW Reporters
Unnikrishnan is currently Senior Associate Editor with BW Businessworld at its Mumbai Bureau. During his two decades long journalistic career, he has received several media awards and recognitions. His articles on healthcare, life sciences and intellectual property rights (IPR) have been republished by several international blogs and journals.
