IKEA plans to make its India operations profitable by FY28 as the retailer expands its presence through a network of smaller-format stores across the country.
The Swedish home furnishing giant intends to open around 25 small and medium-sized outlets over the next four to five years, complementing its existing large warehouse-style stores. The strategy is designed to improve operational efficiency, reduce costs and bring the brand closer to customers in dense urban areas.
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India has been identified as one of IKEA's top three priority markets globally, with the company targeting long-term growth through a combination of physical stores and digital channels.
Financial filings show the retailer is still in a heavy investment phase. During FY25, losses widened to approximately INR 1,299.4 crore, while revenue from operations declined slightly by 3.33% to INR 1,749.5 crore. Borrowings also rose to around INR 8,335.2 crore as the company invested in logistics, supply chains and retail expansion.
As part of the expansion, IKEA will open a 32,000 sq ft city-format store in Pune on 12 March, marking its first physical outlet in the city after serving customers through online deliveries for several years.
The retailer currently operates large stores in Hyderabad, Navi Mumbai and Bengaluru, alongside city-format locations in Mumbai and New Delhi, as it continues building a long-term retail ecosystem in India.
Source: propnewstime.com
