Ikea looking for next phase of investment in India, aims profitable growth:CEO Susanne Pulverer

New Delhi, Feb 27 – Swedish furniture giant Ikea is ramping up its presence in India, with online sales launching in Delhi-NCR and nine other markets this week. Alongside its digital expansion, the company is gearing up for the next phase of investments in the country, aiming to achieve profitability after its ongoing expansion, said Susanne Pulverer, CEO of Ikea India.

Upcoming Store Launches in Delhi-NCR, Chennai, and Pune​

Ikea is set to open two full-scale stores in Delhi-NCR—one in Gurugram by 2026 and another in Noida by 2028. Beyond the capital region, the retailer has its sights on Chennai and Pune, which are part of the company’s next phase of growth. Pune already benefits from Ikea’s online services, and while specific timelines for physical stores in Pune and Chennai remain undisclosed, Pulverer confirmed they will be operational within the next few years.

The expansion is part of Ikea’s strategy to establish a strong footprint across six major metro cities, including Hyderabad, Mumbai, and Bengaluru. After cementing its presence in these key markets, Ikea will shift its focus towards smaller stores and an omnichannel strategy for future growth.

Future Plans in Eastern India​

As for expansion in the eastern markets, particularly Kolkata, Pulverer acknowledged its importance but indicated that Ikea would take a step-by-step approach due to logistical challenges. The company plans to consider Kolkata in the third phase of expansion, following its focus on the six key metros.

Investment Commitments & Profitability Strategy​

Ikea entered India with a ₹10,500 crore FDI proposal in 2013 to establish 10 stores with supporting infrastructure over a decade. Ingka Centres, a division of Ingka Group that operates Ikea stores globally, is investing €1 billion (approximately ₹9,000 crore) to develop two large retail centres under the ‘Lykli’ brand in Gurugram and Noida.

Despite a widened total loss of ₹1,299.4 crore in FY24, Ikea’s revenue rose 4.5% year-on-year to ₹1,809.8 crore. The company remains committed to affordability while investing heavily in new markets. Pulverer assured that as Ikea scales its operations, profitability will follow in the coming years.

Optimizing Store Size to Manage Costs​

Addressing high real estate costs in India, Ikea is reducing the size of its new stores, focusing on optimized space utilization. The upcoming Gurugram and Noida stores will be 2-2.5 lakh square feet—a significant downsizing from Ikea’s traditional large-format stores, such as those in:

• Hyderabad (4.8 lakh sq ft)
• Navi Mumbai (5.3 lakh sq ft)
• Bengaluru (4.6 lakh sq ft)

Pulverer explained that Ikea is adopting a Customer Distribution Center (CDC) model, streamlining logistics and reducing reliance on large store inventories. The new stores will still offer the full Ikea experience, including food courts, play areas, and inspirational room setups, but within a more efficient footprint.

Consumer Trends Amid Inflation​

Despite inflationary pressures, Ikea continues to attract a diverse range of customers. Some visitors explore the stores without purchasing, while others focus on small-ticket items or full-home shopping. Pulverer remains optimistic, emphasizing that Ikea’s affordability strategy ensures accessibility across different customer segments.

As Ikea accelerates its India expansion, its focus on a blended online-offline presence, strategic investments, and cost-efficient store formats positions it for sustainable growth in one of the world’s fastest-growing retail markets.