Swedish home furnishings major IKEA today opened its first store in India, kicking off its retail journey five years after it received approval to invest in the country's single-brand retail sector. As anticipated, the launch received an exciting reception both on field and off.
Main Points-
- The store here is the first of 25 such outlets planned to be set up in India by 2025. In 2013, IKEA received nod from the government to invest Rs 10,500 crore in single-brand retail.
- IKEA had originally planned to open its first store in India by 2017, but it was delayed. The opening of its first store here was scheduled for July 19 this year but the company again pushed it back by almost 20 days to August 9, citing quality commitments.
- Out of the total outlay of Rs 10,500 crore, the company has so far invested Rs 4,500 crore in its different projects in India.
The company said it would increase its investments in India as it looks to accelerate expansion in the country faster than it would usually do elsewhere.
- Besides retail, IKEA said it will also enter e-commerce segment in India by next year, besides exploring small format stores as part of its India expansion plans.
After Hyderabad, Ikea's second store would be in Mumbai next year, followed by Bengaluru and Delhi-NCR.
- IKEA said is has adopted a "non-negotiable" approach to hire 50 per cent women at all levels in India, even "including forklift drivers and assembling co-workers".
(Inputs from PTI)
