Swedish home furnishings retailer IKEA is taking a huge shift in its India growth strategy by deciding to set up compact stores in smaller cities to become more accessible to customers.

IKEA, currently in the second phase of its growth in India, plans to expand through a network of small-format stores tailored to specific locations and catchment areas.

According to Pooja Grover, IKEA India Country Expansion Manager, these stores may be as small as 10,000 square feet, which makes them ideal for local shopping centers.

Additionally, Pooja mentioned that these compact stores would enable IKEA to grow more rapidly, maintain flexibility, and create a presence in shopping centers and main streets. She mentioned that IKEA is additionally looking into collaborations with real estate developers to back this new idea.

While these stores will feature a restricted physical display of IKEA's items, they will be equipped with a digital catalog enabling customers to browse the brand's selection of approximately 7,000 products and make purchases.

Pooja says, “There will be various delivery options, such as home delivery, pickup at a designated location, or collection by a third party.

"We aim to combine multiple elements and provide various types of experiences in different formats. From a size perspective, this is a significant advantage for us in India too, as it will allow us to reach many more individuals,” adds Pooja.

The firm is presently concentrating on six key cities: Hyderabad, Bengaluru, Mumbai, Delhi NCR, Chennai, and Pune.

IKEA has opened its inaugural Plan & Order Point (PaOP) in Bengaluru, spanning 740 square meters. This new format serves as a specialized customer interaction center, providing tailored consultations, professional home design advice, adaptable planning support, and installation services that connect IKEA's expertise more closely with customers.

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IKEA's CEO Susanne Pulverer announced in February that the business is now focused on achieving profitable growth in the year ahead. It is in negotiations with the government to obtain authorization for the upcoming phase of foreign direct investment (FDI).