In a strategic move to enhance its operational efficiency, furniture retail giant Ikea has declared the discontinuation of its store at Mumbai’s R City mall by mid-2024. The decision aims to consolidate the company’s presence in the city, focusing on its larger Worli store due to concerns about the viability of the small-format R City outlet.
The R City store, spanning 70,000 square feet and inaugurated in June 2022, has offered a limited selection of Ikea products. The company clarified that the closure is attributed to the challenges posed by the store’s layout, design, and location, preventing the delivery of the complete Ikea shopping experience. This development will not impact Ikea’s other units in India, which will continue to provide a comprehensive experience for customers.
Ikea, known for its big-format store in Navi Mumbai and a small-format store in Worli, is committed to expanding its footprint in Mumbai. The Navi Mumbai store, covering an extensive 5 lakh square feet, stands unaffected by this decision. Emphasizing the strategic learning curve from the R City experiment, Ikea acknowledged the evolving nature of customer preferences and committed to refining its approach to enhance the shopping experience.
“Mumbai is a crucial market for Ikea in India, and we remain steadfast in our commitment to invest in the region and other parts of Maharashtra,” the company stated. The focus on Mumbai’s growth includes exploring new omni-channel formats, developing the existing Ikea Navi Mumbai site into a retail hub, expanding physical presence in Pune, and strengthening online accessibility across Maharashtra.
Ikea currently operates three big-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with two small stores in Mumbai. The company is poised to open stores in Delhi-NCR and an Ikea-anchored shopping center in Gurugram.
The closure of the R City store will see affected workers offered “equal opportunities” for their next assignments in Mumbai and other markets, ensuring a seamless transition. Ikea expressed hope that the affected employees would choose to continue their journey with the company.
“This strategic decision aligns with our goal to have a leaner and faster retail business, maintaining our commitment to our vision, values, and culture. We welcomed nearly 50 million people from the region to our stores and online platforms over the past three years,” Ikea added, emphasizing its long-term commitment to India and dedication to creating more growth avenues and job opportunities.
