Swedish furniture giant IKEA is set to expand its presence in north India with the launch of e-commerce services in Delhi-NCR and nine other cities, including Uttar Pradesh and Punjab, starting March 1. This move marks a significant milestone in IKEA’s Indian journey, seven years after its initial entry into the market. The expansion follows the recent inauguration of the company’s distribution center in Gurugram, which is expected to facilitate same-day deliveries in Delhi-NCR, boosting IKEA’s operational efficiency and customer satisfaction.
With this expansion, customers in Delhi-NCR, Agra, Amritsar, Chandigarh, Jaipur, Kanpur, Lucknow, Ludhiana, Prayagraj, and Varanasi will be able to order IKEA products online. Until now, IKEA’s e-commerce services were limited to five states—Andhra Pradesh, Karnataka, Maharashtra, Telangana, and Gujarat—where the company also has offline stores in Hyderabad, Bengaluru, Mumbai, and Navi Mumbai. The north Indian market is set to become IKEA’s largest in the country, and its online business, which currently accounts for 30 percent of its total revenue, will play a crucial role in achieving deeper market penetration. The company expects a significant increase in loyalty program members from Delhi-NCR and other northern states, adding to its existing 27 lakh members across India. Currently, IKEA has onboarded only 1 lakh members from Delhi-NCR, which is around 4 percent of its total loyalty base in the country.
IKEA has taken into account the unique preferences of Delhi-NCR customers while curating its product range. Unlike Mumbai, where space constraints drive the demand for multifunctional products, Delhi homes generally feature larger living rooms, spacious kitchens, and outdoor areas like balconies and gardens. Recognizing this, IKEA is tailoring its offerings to suit the needs of multi-generational families and outdoor celebrations, both of which are prevalent in Delhi’s housing culture. This approach ensures that customers in the region will have access to products that align with their lifestyle and home decor preferences.
In addition to online deliveries, IKEA is also working on setting up smaller format stores in Delhi, recognizing that large parcels of land are either unavailable or highly expensive in the region. The company’s strategy focuses on ensuring that customers can access IKEA’s products conveniently, whether through its online platform or physical stores. The company aims to achieve its goal of ‘one click, 30 minutes away,’ meaning that IKEA will always be available online, and customers will be within 30 minutes of a physical touchpoint. This strategy aligns with IKEA’s commitment to enhancing accessibility and customer convenience.
Supporting its e-commerce expansion in Delhi-NCR, IKEA partnered with Germany-based Rhenus Logistics in June 2024 to establish a 1.5-lakh-square-foot warehouse in Gurugram. The warehouse, which commenced operations on Monday, will serve as a crucial logistics hub, ensuring seamless and timely deliveries. Furthermore, all deliveries in Delhi-NCR will be made using electric vehicles (EVs), reinforcing IKEA’s commitment to sustainability and reducing its carbon footprint in India.
While online services are launching this year, IKEA has also outlined plans for its physical expansion in Delhi-NCR. The company is set to commence offline operations with the Gurugram store, expected to open in 2026. This store will be spread over 2 lakh square feet and will house a 1,000-seater restaurant serving a mix of Indian and Swedish delicacies. Meanwhile, the construction of the Noida store began in September 2023 when Uttar Pradesh Chief Minister Yogi Adityanath laid the foundation stone. The store is expected to be completed by 2028, further strengthening IKEA’s footprint in north India.
The upcoming stores in Gurugram and Noida will be part of Ingka Centres, under IKEA’s parent company, Ingka Group, which has committed an investment of Rs 9,000 crore for these projects. These centers will not only feature IKEA stores but will also house other retail outlets, offices, and even a hotel, creating a comprehensive commercial ecosystem. This move aligns with IKEA’s global strategy of integrating its stores with broader retail and commercial spaces to enhance customer engagement and convenience.
As IKEA gears up to serve the vast north Indian market, its focus on digital expansion, strategic store locations, and sustainability measures indicate a well-calibrated approach to growth. With e-commerce services rolling out in March and physical stores on the horizon, IKEA’s presence in north India is set to transform the region’s furniture retail landscape, offering customers greater convenience, accessibility, and a broader range of home furnishing solutions.
