Home / Companies / News /  IKEA to bring small store formats to Mumbai in FY 2021

New Delhi: Furniture retailer IKEA will bring its planned small format stores to the city of Mumbai and accelerate its omni-channel strategy here in the county in FY21, as demand for home furniture and furnishings remains robust, the retailer said in a statement on Tuesday.

“We look forward to a strong and positive FY 2021 with our new IKEA store and also smaller formats coming up in Mumbai and continue establishing a strong omnichannel presence in our markets. 2021 is also the year of sustainability for IKEA and we will continue to enable and inspire more people to live a more sustainable life at home," Peter Betzel, CEO and CSO, IKEA India said in a statement to the press on Tuesday.

Ikea, the world's largest furniture retailers, is scheduled to open a store in Navi Mumbai and add two small format stores in the city of Mumbai in 2021.

Demand for furniture the world over has surged as people spend more time indoors and seek products to make their life more comfortable at home.

In India, where the retailer has one store in Hyderabad and online sales channels in the city of Pune and Mumbai it launched a click & collect service and opened up furnishing consultancy for shoppers in Hyderabad.

“It has been a significant year for IKEA India. This time has reinforced our long-term commitment to India—we accelerated plans to meet customers in the new reality, supported our co-workers and customers during the crisis, took care of vulnerable communities, stayed agile and flexible. New services like Click & Collect, remote planning and home furnishing consultancy was launched in Hyderabad," Betzel said.

In India, the retailer known for its flat pack furniture has been lowering prices for many articles, said Betzel. “During the year, over 2 million customers visited our Hyderabad store and over 25 million people visited us online. As more people have been forced to stay home, the interest in home furnishing has increased and online shopping grew significantly," he said.

For the year ended 31 August, 2020, retail sales, of products and services at IKEA's 445 stores and online, stood at 39.6 billion euros ($46.7 billion) down 4%, according to a news report by Reuters on Tuesday.

The Inter IKEA Group financial year runs from 1 September to 31 August.

For the full year, online sales surged for the retailer, growing by 60%, and amounting to about 18% of total sales globally.

As life at home has become more important than ever for people, behaviours and needs have shifted, which has led to a repurposing of the home in many ways, the retailer said. People need their home not only to accommodate their basic needs, but also to act as a workplace, a school or even a gym.

Globally, Ingka Group, the main franchisee of Ikea stores, accelerated its retail transformation over the year, re-purposing its stores to fulfilment units, as well as implementing click & collect services, offering pick-up and drive-thru options, the company said.

Over the year, the company opened 26 new IKEA locations in cities such as Shanghai, Seoul, Moscow and Tokyo.

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