Tuesday, 25 June, 2019

IKEA India to invest ₹3000 cr for 3 new fulfilment centres

Ikea has been introducing smaller stores in urban centres to reach more customers Ikea has been introducing smaller stores in urban centres to reach more customers
Ginger Lawrence | 13 October, 2018, 00:48

The Swedish flatpack furniture giant opened 19 new stores globally during the period, pushing total store count to 422, and added two new markets: India and Latvia.

IKEA stores in India house close to 7,500 products, ranging from kitchenware, bathroom accessories, textiles, cleaning products, wardrobes, home electronics, artificial plant décor and more, and are customised as per Indian needs and usage.

"By 2025, we have the potential to reach and interact with 3 billion people", Inter Ikea Group chief executive Torbjörn Lööf said.

The company will in the coming years open stores in Chile, Colombia and Peru through a new Ikea franchisee called Falabella as part of its first foray into South America, Inter Ikea said.

Ikea will open 15 new stores across Mexico, Estonia, Ukraine, Puerto Rico, Oman, Luxembourg, Macau and the Philippines in FY19.

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It is also planning to double its office space in King's Cross, London , with capacity for more than 6,000 workstations by 2022. It pointed to damage to profitability from a £759m cost of sales and £444m in "administrative expenses" that were not explained.

Peter Betzel, CEO, IKEA India said Karnataka was a priority market for the co-mpany and it would invest Rs 2,000 crore here: Rs 1,000 crore will go into the construction of the store while rest will be used in setting up multi-channel formats including meeting places and experiential sto-res.

Betzel, who attended the ground-breaking ceremony of Ikea's third India store here Thursday, said the company already had an online platform and was now in the process of connecting different platforms to maximise business prospects. The company plans to step up its game with the launch of its e-commerce website by 2019. The company will focus on integrating online and offline stores.

Last month, the company said it planned to open 25 retail stores across India by 2020.

We scoped out the new locale, and we discovered that it's only a short distance from the Nagasandra Metro Station so you can skip out on the traffic jams (a dream come true in Bangalore). That means new Ikea franchisees should be able to "reach bigger volume faster with lower costs", Loof said. Rising sales and service revenue at the global level has given a boost to Ikea's expansion across the globe.

Ingka Group said in a separate statement that its full-year sales rose to €34.8 billion from €34.1 billion a year earlier. Ingka said it experienced sales growth in a majority of its 30 markets, with one of the biggest increases recorded in China.