IKEA bets ₹20,000 crore on smaller city stores as Indian homes reshape its playbook

IKEA is pivoting to compact mall-format city stores, doubling local sourcing to 50% and headcount to 5,000 by 2030, and targeting profitability by FY2028. The Swedish giant is adapting merchandising to Indian home usage across ~20 planned stores in a market set to nearly double to $34.24bn by 2034.

— Filed Wed, 15 Jul, 2026, 06:07 IST · Source Mint · Companies · Updated

IKEA is investing ₹20,000 crore to expand in India, shifting toward smaller mall-format city stores, doubling local sourcing to 50% and headcount to 5,000 by 2030, targeting profitability by FY2028, while adapting merchandising to Indian home usage.

Why this matters

Builds on IKEA's escalating India commitments, from ₹11,000 crore for 25 stores to over ₹21,000 crore by 2030, now sharpening into compact city-format stores and deeper local sourcing.

Retail-company signals accelerating, up 790200% QoQ.

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