Key Points

Oncu, who is part of the Ingka Group, said the company in India is already working with a simplified expansion approach that focuses on cost consciousness and operational efficiency.

He noted that the company will continue to refine and adapt these principles to suit the Indian market, taking into account the learnings from the new format pilots. The aim is to make IKEA more accessible and efficient for Indian customers.

"We will continue to refine and adapt these principles to suit the Indian market based on the learnings of the new format pilots to make IKEA more accessible and efficient in India," Oncu stated.

As part of this plan, IKEA is piloting a new store format that merges with its omnichannel offerings. This new approach is one of many customer meeting point formats being tested around the world. If the pilot proves successful, it could play a key role in IKEA's strategy of expansion and accessibility in India.

The company is currently testing smaller, more agile store models in select markets, including the UK, Texas, and Poland.

According to IKEA, these new models are designed to be faster and more cost-effective to open while still offering thousands of products along with planning services. The smaller format is expected to create a simpler and more efficient shopping experience for customers.

Initial feedback from these pilot stores has been encouraging. IKEA believes that the format has strong potential to help the company expand into new locations and bring its products and services closer to more people.

The goal of this initiative is to make IKEA more accessible to a wider audience without compromising on product variety or customer support.

Oncu further mentioned that the company is in the process of gathering learnings and results from these pilot projects. IKEA expects to have a clearer picture of the effectiveness of the new format by the end of the year.

- ANI