Global furniture retailer Ikea plans to open smaller stores in India

One of world's largest furniture retailer brand Ikea is planning to set up small store in India because of the high land prices and strict building and real estate rules in the country.
Ikea

One of world’s largest furniture retailer brand Ikea is planning to set up small store in India because of the high land prices and strict building and real estate rules in the country.
In India, however, the company has approached real-estate developers to build stores spanning 1 lakh square feet to 2 lakh square feet. Typically, an Ikea store spreads over 350,000 square feet on a land of 10-15 acres.
It has a two-level building with parking space for at least 1,500 vehicles, either in front of the building or under the building, depending on the land prices. The stores are always located along a highway, near a public transport preferably a metro line, it said. Currently, there are 315 Ikea Group stores in 27 countries.
The Swedish company’s core business is selling higher volumes, to a bigger customer base, at low prices. To make this possible, it sets up large stores and cuts out on unnecessary costs in the supply chain.
The move comes as the Swedish company is moving ahead with its plans to build 25 stores with the first store expected to come up in Hyderabad.
The company has got an approval to invest Rs 10,500 crore for its India expansion.
Impacted by the stringent construction rules and high land prices, Ikea has decided to cut down on the size of its stores in the country. But, the company did not specify how big or small the stores in India would be. 

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