IKEA Announces Closure of Its Store at Mumbai’s R-City Mall

FDT Bureau

IKEA has decided to close its store in R-City Mall, Mumbai, citing that it did not meet the expectations of the Swedish home products and furniture retailer. 

The 72,000 sq. ft. store, located on the mall's third floor, launched in July 2022 as part of IKEA's initial wave of smaller format stores in India, aligning with its broader omnichannel strategy.

REASONS FOR CLOSURE

According to an insider, issues with overall customer experience, including suboptimal layout and design, led to this decision.

“This strategic decision is at the back of the learnings we have had in terms of customer experience and aligned to our vision of creating a leaner and faster retail business in the country,” the company said in a statement. “It further allows us to consolidate our Mumbai operations to IKEA Worli, IKEA Navi Mumbai and online presence while exploring newer opportunities for future growth,” IKEA said.

IKEA plans to shut down the store within the next six months, citing insights gained on customer experience and a vision for a more efficient retail presence in the country.

CONSOLIDATION AND GROWTH STRATEGY

The closure aims to consolidate operations in Mumbai to IKEA Worli, IKEA Navi Mumbai, and online platforms while exploring new growth opportunities.

Staff from the R-City location will be retained and redeployed to other IKEA operations in Hyderabad, Bengaluru, and New Delhi, where the company will launch online sales later in the year.

Simultaneously, IKEA is preparing to launch stores in additional cities across Maharashtra, including Pune, where it is actively seeking suitable real estate. Furthermore, the company will extend its online product offerings to 14 districts within Maharashtra.