IKEA India Expands with Smaller Stores, Localized Furniture, and a Growing Food Business

IKEA India is introducing smaller store formats to improve accessibility, including “planning order points” and compact retail spaces (20,000–40,000 sq. ft.). Their goal is to ensure customers can shop online or reach a store within 30 minutes. Despite a slowdown in consumer spending, IKEA continues expanding with a diverse product range, from budget items under ₹200 to premium furniture. Their strong online presence supports growth. Food plays a key role, with locally sourced ingredients and innovative menu updates. IKEA is also designing furniture tailored to Indian lifestyles, like multifunctional beds and compact living solutions, while aiming to make India a key manufacturing hub.

IKEA India Expands with Smaller Stores, Localized Furniture, and a Growing Food Business

IKEA India is adapting its approach to better suit local lifestyles by introducing smaller, more convenient stores. The goal is to make shopping easier, whether online with a quick click or by visiting a physical store within 30 minutes. To achieve this, they are experimenting with different store formats. For example, they are setting up “planning studios” where customers can design their homes without visiting a large warehouse store. Additionally, they are opening compact stores (20,000–40,000 square feet) where shoppers can explore accessories and choose furniture more easily. These smaller spaces save time and allow people to shop closer to home.

Despite a slowdown in consumer spending, IKEA continues to expand in India. Their strategy focuses on offering a wide range of products for all budgets, from kitchen tools priced under ₹200 to luxury sofas costing ₹50,000. Unlike stores specializing in a single category, such as electronics or decor, IKEA provides everything needed for a home—from small organizers to full-room setups. Their online shopping platform has also grown, enabling them to reach customers in cities and towns without physical stores.

Food plays a surprisingly significant role in IKEA’s success in India. Their in-store restaurants are popular, offering menus tailored to local tastes. Nearly all ingredients are sourced from within the country, and the menu is frequently updated with seasonal specials, festival-themed dishes, and creative new recipes. For instance, during Diwali, customers might find traditional sweets, while summer could bring cooling drinks or regional snacks. Currently, food contributes 7-8% of IKEA’s total sales in India, and the company sees this as a major growth opportunity.

To cater to Indian homes, IKEA is redesigning furniture to align with daily habits. Since many Indians eat meals in their bedrooms rather than dining areas, the brand is developing space-saving solutions such as foldable tables and trolleys to make bedroom dining more practical and tidy. They are also introducing multifunctional furniture, such as L-shaped sofas that convert into beds—ideal for hosting guests in compact apartments. Maximizing space is a key focus, with designs like wall-mounted desks and stackable chairs becoming more prominent.

Another priority for IKEA is developing India-specific products. Their team is researching local traditions, materials, and lifestyle needs to create designs that feel both familiar and functional. They are also exploring partnerships with Indian artisans for handmade textiles and decor. At the same time, IKEA aims to establish India as a manufacturing hub for its global operations. This initiative would not only reduce costs but also support local employment and make products more affordable for Indian customers.

In summary, IKEA is not simply bringing its global style to India—it is actively listening, adapting, and evolving to meet the country’s unique culture and needs. By blending convenience, affordability, and local influences, the company is building a brand that feels both international and deeply connected to Indian life.