IKEA’s Big India Bet: 10% Growth Surge and Bold Expansion Plans Revealed!

IKEA, the leading Swedish furniture and home furnishing retailer, anticipates a robust sales growth of over 10% in India for the financial year 2025 (September 2024–August 2025), according to Ingka Group Retail Manager Tolga Öncü.

Speaking to a media delegation, Öncü outlined ambitious plans to expand IKEA’s footprint in India through a mix of small-format stores (2,000–5,000 square feet), city stores, and its signature large Blue Box outlets. This strategic shift aims to deepen penetration in a market IKEA views as a continent-sized opportunity for growth.

Since entering India in 2018 with its Hyderabad store, followed by Navi Mumbai and Bengaluru, IKEA has faced challenges, including pandemic-related disruptions, but is now witnessing a strong recovery. In FY24, the company reported revenues of ₹1,809.8 crore, a 4.5% increase, despite a widened loss of ₹1,299.4 crore.

Öncü highlighted that India’s market is outpacing many of IKEA’s 31 global markets, with 30% of sales driven by online channels and a surge in customer queries. “We see that we are growing faster in India than many other markets,” he noted, emphasizing the company’s “growth mindset” and commitment to becoming “more relevant” to Indian consumers.

To cater to India’s value-conscious market, IKEA is focusing on affordability by optimizing logistics and operations to lower product prices. The recent opening of a city store in Delhi marks the beginning of a broader expansion strategy that combines traditional large stores with smaller formats to reach diverse urban and non-metro consumers.

“There is an enormous amount of stores that need to be established in India to reach many Indian families,” Öncü said, underscoring the potential of small stores within IKEA’s ecosystem. With tailored strategies and a focus on accessibility, IKEA is poised to transform India’s home furnishing landscape in the coming years.

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