IKEA shuts one of two Mumbai stores, says 'small' for 'full experience'

REUTERS

By mid of 2024, Swedish furniture retailer IKEA, will close down its store in Mumbai R City Mall. The outlet, one of the two in the financial capital of India, will be shut in two years since it opened in June 2022.

The IKEA R City outlet was launched as one of the new-format small store.

Why IKEA is closing R City Mall store?

IKEA is closing down its store in R City Mall due to limitation of layout, design and location.

“We have not been able to provide customers the full IKEA experience due to limitation of the layout, design, and location,” IKEA said in a statement said.

The R City Mall store of the furniture retailer is spread across 70,000 square feet and offers a limited selection of IKEA goods.

What will happen to IKEA R City store staff?

About what will happen to the staff employed at R City Mall when the IKEA store closes mid of this year, the company said: “We deeply value our co-workers, and it is our top priority to support them during this transition. All IKEA co-workers will be offered equal opportunities for their next assignments in Mumbai and our other Units, ensuring their seamless transition.”

“Our hope is that they will continue their journey with us at IKEA,” it said.

What happens to other stores of IKEA in Mumbai?

“IKEA has taken a strategic business decision to discontinue its IKEA R-city operations by mid this year and consolidate its Mumbai operations to IKEA Worli, IKEA Navi Mumbai, and online presence,” the Swedish furniture retailer said.

The company further said, Mumbai, however, is a key market for them in india and IKEA will continue to invest in the market to reach the many customers across the city and various other parts of Maharashtra.

“This strategic decision aligns with our goal to have a leaner and faster IKEA Retail business, maintaining our commitment to our vision, values, and culture,” it said.

Is there IKEA store in Delhi-NCR?

Currently, IKEA operates three big-format stores in India at Hyderabad, Navi Mumbai and Bengaluru. Besides this, it has two small stores in Mumbai.

It also has plans to open stores in Delhi-NCR, and a shopping centre in Gurugram.

With inputs from PTI