Ikea looks to start etail operations in India by March 2019
BENGALURU: Swedish furniture and home furnishings retailer Ikea will start its e-commerce operations in India by March 2019, Ikea India chief executive officer (CEO) Peter Betzel said on Thursday.
The company, which launched its first India store in Hyderabad on August 9, will invest ₹1,000 crore for its 500,000 sq. ft Bengaluru outlet, which is expected to open in the summer of 2020. Its Mumbai store is set to go live later this year.
“Bengaluru is truly cosmopolitan with many people moving in to find new opportunities. With the Ikea store, we will contribute to a better everyday life for all Bengalureans with well-designed, functional home-furnishing solutions.” said Betzel.
The Bengaluru store will have a parking space for 2,000 cars and a 1,000-seater restaurant, besides a supervised children’s play area, Småland, the company said.
It will employ 800-1,000 direct employees and engage another 1,500 indirectly.
Replying to a question when the company expects its venture to be profitable in view of fierce competition from e-retailer majors like Amazon and Flipkart-Walmart, Betzel said Ikea was certainly looking at profitability by developing the business online with physical meeting points.
“When Ikea will be profitable? I cannot tell now, but certainly we are aiming at profitability in coming years,” he added.
According to the home furnishings retailer, Karnataka is a priority market, and it will invest over ₹2,000 crore in the state in the long run. Ikea also reiterated its 2016 target of opening 25 stores in India by 2025, and aims to be present in 49 cities by 2030.
The company had spent over a decade studying the local market, before opening the doors to its 400,000 sq. ft store in Hyderabad after several delays. It has invested ₹800 crore so far to set up its first store.
Ikea said its priority was to meet its quality commitments towards customers and co-workers, and alluded that India offers a significant enough market opportunity that is worth being patient for.
(PTI contributed to this story.)