Ikea’s R-City Mall Outlet To Shut Soon; Will Focus On Worli, Navi Mumbai, & Pune Outlets

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By July, Ikea, the largest furniture retailer in the world, will close its 72,000 square foot store in Mumbai’s R-City Mall in Ghatkopar. In a significant market like India, this will be the company’s first shutdown of this type.

More than a hundred employees who were present at the outlet on Thursday were informed of the impending closure. Additionally, Ikea has offered them the choice to relocate to the Worli or Navi Mumbai locations. A few of them might also be moved to the expanding online team.

While confirming the Ghatkopar store closure, an Ikea India representative stated that the decision was made in accordance with the company’s strategic objective to build a speedier and leaner retail operation in the nation.

“It also enables us to explore new avenues for future expansion while streamlining our Mumbai operations to Ikea Worli, Ikea Navi Mumbai, and online presence,” the representative added.

Remarkably, the firm announced a few days ago that it is contemplating its next phase of investment into India, having almost completely depleted its initial investment of INR 10,500 crore. This coincides with the decision to close the Ghatkopar location.

The Ghatkopar shop, which occupies the third and fourth floors of R-City Mall, reportedly failed to satisfy Ikea’s requirements for a positive client experience, according to a Financial Express story. Although the store’s sales were not immediately available, retail analysts speculate that the corporation is trying to reduce its losses in the nation.

Overall, for the fiscal year that concluded on August 31, 2023, Ikea India reported net sales of INR 1,768 crore, a 61% increase over the previous year. Nevertheless, the company’s regulatory filings show that its net loss for the period increased to more than INR 1,134 crore. The prior year’s losses were INR 901 crore. The company’s accounting year runs from September to August.

Ikea has also expanded its online presence, moving from six sites to 62 districts throughout Maharashtra, Karnataka, Telangana, and Andhra Pradesh. Mumbai, Bengaluru, Chennai, Hyderabad, Pune, and Surat were among them.

According to an Ikea India representative, the company is concentrating on increasing its physical footprint in Pune, establishing new omni-channel formats in Mumbai, and elevating the Navi Mumbai location into a destination for shoppers.