IKEA Unveils First City Store in Delhi, Aims for 50% Local Sourcing in Long-Term India Strategy

IKEA India has strengthened its presence in North India with the inauguration of its first physical store in the Delhi region — a 15,000 sq. ft. city-format outlet at Pacific Mall, Tagore Garden. This development follows IKEA’s online entry into the NCR market in March 2025 and is a crucial milestone in the company’s omnichannel retail strategy.

The new store features over 2,000 home furnishing products on display, with nearly 800 available for instant takeaway. Customers can also access digital planning tools, interior design advice, and IKEA’s popular Swedish Café. For larger purchases, shoppers can order online for home delivery, blending digital convenience with in-store experiences for West Delhi and nearby areas.

Insights from IKEA India Leadership

Outgoing IKEA India CEO & CSO Sussane Pulverer expressed excitement about the launch, stating that this is just the first in a series of upcoming stores in the region. She noted that since launching online in Delhi earlier this year, the company has gained valuable insights into local consumer preferences. The physical store now allows customers to see and experience products in person before buying.

Incoming CEO Patrick Antoni added that IKEA India has “cemented its foundation” over recent years and is now ready to accelerate expansion. He revealed that the company plans to open more touchpoints at a faster pace, strengthen its supply chain, and increase affordability for Indian customers. Antoni also highlighted that India ranks among IKEA’s top markets for customer satisfaction globally.

IKEA’s Omnichannel and Expansion Strategy

The Delhi city store is part of IKEA’s broader “One Click, 30 Minutes Away” approach, which integrates:

• E-commerce platforms

• Large-format experience stores

• Smaller city-format outlets

• Specialised Plan and Order Points

Two full-format IKEA stores are currently in development in Gurgaon and Noida, further enhancing the company’s North India footprint.

Focus on Local Sourcing and Sustainability

On the supply chain front, Pulverer stated that IKEA plans to increase local sourcing from 30% to 50% in the long term. This shift supports affordability, sustainability, and job creation. She acknowledged that building a sustainable raw material ecosystem will take time, but emphasised its importance for both the Indian market and the furniture sector as a whole.

Profitability and Long-Term Investment Plans

Addressing concerns about profitability, Pulverer noted that the company’s recent 5% revenue growth came alongside widening losses, which are in line with IKEA’s long-term investment plan for new markets. She stressed that the brand will remain focused on low-cost operations and volume growth to achieve its business targets.

While Antoni did not disclose revenue projections, he confirmed that Delhi is expected to become one of IKEA’s top two markets in India, given its size and demand for home furniture.

IKEA’s Bet on Accessibility, Affordability, and Localisation

With the opening of the Pacific Mall store, IKEA is positioning itself to tap into one of India’s most competitive retail markets. By combining affordable pricing, a localised product approach, and multi-format retail presence, the brand aims to deepen its connection with Indian consumers and strengthen its market share in the home furnishing segment.