Ikea India’s online sales surge, footsteps in stores still below pre-pandemic level

Pulverer is confident in the country’s long-term demand outlook and does not see the acceleration of e-commerce diminishing the importance of physical retail. In 2022, Ikea plans to open its second city store in Mumbai and a large format store, and another city store in Bangalore.

It also plans to open smaller outlets in four to five more locations to help reach more customers. Currently, the company has two large format stores, the first one installed in Hyderabad in 2018, and another in Navi Mumbai installed in 2020.

This is part of its plan to invest a cumulative amount of Rs 10,500 crore ($1.6 billion) in its retail operations in India by 2030, of which Rs 6,000 crore was earmarked for Maharashtra.

“We will always need stores, as many are still willing to have a tactile experience of a wide range of products and get immediate cash and carry. Stores will be leveraged to fulfill more of these orders,” Pulverer said.

Ikea has been sourcing from India for over 35 years with almost 60 suppliers. The company aims to double its local sourcing to 50% in the next few years. “The pandemic has created a lot of disruption in sourcing in China and accelerated the push for local sourcing.” The company works with over 45,000 direct employees and 4 lakh people in the country’s extended supply chain to produce for Ikea stores around the world.

About Scott Bridges

Check Also

Billions of dollars were spent on Chevron by Berkshire Hathaway

Starting a business can be a daunting task. There is so much to do and …