New Delhi, March 2026 – IKEA India has set an ambition to achieve profitability by the end of FY28, working across multiple vectors including growing its topline, opening more stores, improving operational efficiency, and creating better customer solutions. The Swedish home furnishing giant intends to open around 25 small and medium-sized outlets over the next four to five years, complementing its existing large warehouse-style stores, a strategy designed to improve operational efficiency, reduce costs, and bring the brand closer to customers in dense urban areas. India is among one of the top three priority countries of IKEA globally, where the company wants to make a breakthrough. According to the latest annual filing by IKEA India before the RoC, total loss widened to ₹1,299.4 crore in FY25, and revenue from operations declined 3.33% to ₹1,749.50 crore. IKEA India’s total borrowing also increased to ₹8,335.20 crore as the company invests to expand its network through an omnichannel approach.
The Small Store Strategy and What It Unlocks
The new small and medium format stores will range from 2,500 to 20,000 square feet, a strategic shift aimed at enhancing accessibility in smaller cities that cannot support IKEA’s traditional 300,000-400,000 sq ft hypermarket format. This format shift allows IKEA to enter Tier I and Tier II markets where land costs, footfall patterns, and consumer income profiles require a more agile, lower-capital approach. The omnichannel integration combining city stores with digital commerce and same-day delivery.
IKEA is simultaneously exploring additional land parcels in large metropolitan markets such as Delhi and Bengaluru for future development aimed at strengthening the brand’s long-term presence in major urban clusters where demand for organised home furnishing retail is growing. IKEA entered India in 2018 with its first store in Hyderabad and has since added outlets in Mumbai, Bengaluru, and Navi Mumbai.
