IKEA, Swedish furniture major who is on the verge of opening its second store in India is set to open a store in a mall in Mumbai. The company is in talks with realty developer Runwal Group to lease nearly one lakh square feet space spread over two floors at R City Mall in the Ghatkopar suburban area of Mumbai. This will be for the first time ever across the world IKEA would be setting up its store in leased property in a mall.
The Runwal group operates four malls in Mumbai with a total leasable area of approximately 2 million square feet. This includes its flagship R-City mall in Ghatkopar which has a total leasable area of 1.2 million square feet.
Last week IKEA had launched its first online store in the country, catering to the Mumbai market. IKEA had earlier planned to launch the e-commerce platform along with the opening of its store in Mumbai. The Mumbai online store will deliver goods within four days of placing of an order.
Due to non-availability of space and mobility issues, IKEA is adopting a different strategy for Indian market. Its exploring opportunities to open its stores in different places to reach the many people in India. Unlike in other places where it has opened single store in big cities, in Indian cities IKEA is planning to supplement big stores with many smaller ones.
While Hyderabad store was opened last year, Navi Mumbai store is scheduled for this year which will be followed by stores in Bangalore and Gurgaon where it has already bought land. IKEA’s proposed store in the Navi Mumbai region will cater to Thane and Raigadh districts, apart from Mumbai. The store is also expected to service customers from the city of Pune. The company is on the look for suitable sites in other cities across India. As per the original plans, IKEA had plans to set up 25 stores by 2025 by investing more than 10,000 crore.