Ikea India to shut Mumbai city store, plans expansion in Pune and online presence
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Ikea India has announced the closure of its R-City Mall store in Mumbai by mid-year, citing concerns about the viability of running a small-format store amid rising rentals.
The 72,000 sq ft R-City store, which opened in June 2022, aimed to test the feasibility of smaller formats but faced challenges in providing the complete Ikea experience.
While Mumbai remains a key market for Ikea, the decision to consolidate operations aligns with the vision of creating a leaner and faster retail business.
Ikea will continue investing in Mumbai, exploring newer omnichannel formats and plans to open a store in Pune, emphasizing a robust focus on the Mumbai market.
The move will not affect other units in India, and the 100 employees from the R-City store will be offered opportunities in Mumbai and other units. Ikea currently operates big-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with two city stores in Mumbai.
