Ikea plans to work with Rhenus Logistics, a German company, to offer online deliveries in Delhi, Noida, and Gurugram seven years after entering the Indian market. As per a report, the service will operate from a 150,000-square-foot warehouse in Gurugram and is expected to start before the company's physical stores open in the region.
Ikea’s E-commerce Expansion
The Swedish retailer has stores in Hyderabad, Bengaluru, Mumbai, and Navi Mumbai, and its online delivery service is currently offered in four states: Andhra Pradesh, Karnataka, Maharashtra, and Telangana.
It is anticipated that Ikea's decision to enter Delhi-NCR, a key market, will improve its standing in India's quickly expanding furniture market. About 30% of the company's revenues in India come from its e-commerce division, making it a key component of its strategy.
In an effort to speed up its online delivery expansion into Delhi-NCR, Ikea teamed up with Rhenus Logistics in June 2024. Rhenus announced plans to establish a 1.5 lakh square-foot warehouse in Gurugram, designed to store and fulfil over 7,000 products. This facility will enable doorstep delivery and 24-hour order fulfilment.
Rhenus Logistics emphasised the potential of the area, stating, “India is currently the world’s fourth-largest furniture market, rising rapidly from tenth place 10 years ago."
“As we expand our partnership from a European base to a global scale, our journey with Ikea is a testament to our shared commitment to excellence, innovation, and sustainability.
This new warehousing project in India is not just an expansion of our operations but a bold step towards a more inclusive and diverse global presence,” said Rhenus India’s Regional CEO, Vivek Arya, emphasising the project’s impact.
They added that Rhenus India's supply chain experience is well suited for Delhi-NCR with its increasing demand for premium real estate.
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Stores in Noida, Gurugram in the Works
In addition to the online deliveries, Ikea is also getting ready to open its first stores in the Delhi-NCR. The 400,000-square-foot store in Gurugram, which is expected to be the biggest in the region, will have a 1,000-seat restaurant serving Swedish and Indian cuisine.
Meanwhile, CM Yogi Adityanath laid the foundation stone for the development of the store in Noida in September 2024. The Noida store is expected to open by 2028.
The brand also secured a 12-acre plot of land in Noida for Rs 850 crore in February 2021. There will be an integrated IKEA store, office towers, and a nine-story hotel on the property. A variety of retail, dining, hotel, office space, entertainment, and cultural activities will be available at the Lykli Noida development.
Over 25 million tourists are expected to visit each year. Ikea’s entry into Delhi-NCR is set to boost employment, investment, and consumer access to the Swedish retail brand.
“We are looking at the next level of investment to further build Ikea’s presence in India, to expand volumes and increase sourcing.” said Susanne Pulverer, CEO of Ikea India, reaffirming the company’s long-term vision for the country.
Ikea is also considering expansion in Pune and Chennai in addition to Delhi-NCR, with Kolkata on its radar for future projects. Nonetheless, the Swedish company intends to implement its expansion strategy systematically.
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