IKEA Launches First City Store in Delhi, Aims for 50% Local Sourcing

IKEA India has opened its first physical store in the Delhi region at Pacific Mall, Tagore Garden. As per news reports, the 15,000 sq. ft. city-format outlet offers over 2,000 home furnishing products on display, with about 800 available for immediate purchase. Customers can also use digital planning tools, seek interior advice, and access a Swedish Café.

IKEA Expansion Strategy

As per Sussane Pulverer, outgoing CEO & CSO, IKEA India, in an exclusive interview to CNBC-TV18, the launch follows the company’s online entry into the NCR market in March 2025. IKEA’s “One Click, 30 Minutes Away” approach integrates e-commerce, large-format stores, smaller city outlets, and Plan and Order Points. 2 large-format stores are under development in Gurugram and Noida.

Aims for Local Sourcing 

As per the reports, IKEA currently sources about 30% of its products from India and plans to increase this to 50% over the long term. The company has stated that this will require building a sustainable raw material ecosystem to support affordability, sustainability, and employment in the country.

The company began operations in Delhi with online sales, planning to understand customer preferences before opening a physical store. While online channels provide convenience and data insights, physical stores allow customers to see and handle products directly.

Read more: Awfis Ventures into Furniture Business to Create New Income Stream and Trim Costs!

Product and Store Features

The West Delhi outlet includes room set displays to help customers visualise furniture placement, along with inspiration points across the store. Larger items can be ordered for home delivery. The store’s location in a popular retail hub is intended to increase accessibility for the surrounding areas.

IKEA has introduced a generative AI chatbot for product queries and personalised design suggestions. It also offers IKEA Kreativ, an online tool that lets customers design rooms in a mixed-reality setting. These tools are used alongside in-store experiences.

Conclusion

Since entering India, IKEA has expanded to multiple large and small-format stores. The Delhi launch is part of a plan to increase local sourcing, expand physical retail presence, and integrate online and offline services across key markets.

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