IKEA's Indian Expansion: Aiming Profitability by FY28

Swedish furniture giant IKEA plans to achieve profitability in India by FY28, with intentions to launch 25 more stores and enhance efficiency. Despite current losses and increased borrowing, IKEA foresees significant growth through an omnichannel strategy, focusing on major cities and smaller store formats.

Swedish furniture retailer IKEA is set to broaden its footprint in India, aiming for profitability by the end of fiscal year 2028. The company plans to unveil 25 new small to medium-sized stores over the next four to five years, according to CEO Patrik Antoni.

To achieve this target, IKEA will focus on improving topline growth, optimizing store operations, and enhancing customer service. Despite reporting a total loss of Rs 1,299.4 crore in FY25, IKEA remains committed to its expansion in India, viewing it as a key market with high potential.

Emphasizing an omnichannel approach, IKEA plans to maintain low operating costs by blending online and physical shopping experiences. New stores will range in size, reflecting their diverse urban target markets. The retailer is currently operating large-format stores in key cities like Hyderabad, Mumbai, and Bengaluru.

(With inputs from agencies.)