In a shift from their usual approach, the Swedish furniture maker is opting for a store rather than building their own stand alone space.
Global home furnishing company IKEA, for the first time ever across the world, is set to lease space in a retail mall to open its store. The Swedish company is in advanced talks with realty developer Runwal Group to lease nearly one lakh sq ft spread over two floors at R City Mall in Mumbai’s Ghatkopar suburb, three persons with direct knowledge of the development said.
IKEA is known for its massive stores. However, the company is likely to approach Mumbai, the country’s most expensive realty market, with a different plan.
Last week, the company launched its first online platform to serve the market of the country’s commercial capital, Navi Mumbai and Thane, offering more than 7,500 products ranging from home furnishing solutions to electronics. It will operate its online store even as it runs its offline operations.
“IKEA is currently exploring opportunities to open its stores in different places to reach the many people in India. We opened our first store in Hyderabad in August 2018. India is a prioritised market and we have ambitious expansion plans. Three Indian cities are in the fast-speed expansion markets which include Mumbai, Bengaluru and Delhi/National Capital Region. Land sites have been acquired in Bengaluru and Gurugram and we continue to look for suitable sites in other cities across India. No other landsites have been closed so far,” IKEA said in response to ET’s query.
The brand is learnt to have engaged the popular suburban mall for a lease of five years; the lease being open for extension by another five years, taking it to total 10 years. The definitive documents are likely to be executed subject to fulfillment of certain terms and conditions as agreed between the parties.