The 72,000 sq. ft. city-centre store was opened in July 2022 and was among the first batch of relatively smaller format stores that IKEA opened in India as part of its larger omnichannel play
New Delhi: IKEA is shutting its store in R-City Mall in Mumbai as the store has failed to live up to the Swedish home products and furniture retailer’s expectations.
The 72,000 sq. ft. city-centre store on the third floor of the mall opened in July 2022 and was among the first batch of relatively smaller format stores that IKEA opened in India as part of its larger omnichannel play.
“There was an overall customer experience issue with the store… the layout and design was not optimal,” said a person familiar with the development.
Now, the world’s largest furniture retailer has decided to shut it in the next six months.
“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.
“The focus on growing Mumbai remains robust as we explore newer omni-channel formats for the city, and further develop the existing IKEA Navi Mumbai site into a retail destination,” it added.
The over 100 R-City staff would be retained by the company and relocated to IKEA’s other operations including Hyderabad, Bengaluru and New Delhi where the Swedish company will start selling online later this year.
“Taking care of our dedicated co-workers is our highest priority and we will lead with respect and compassion throughout the process. We are committed to supporting them with equal growth opportunities and a seamless transition and have them continue to be a part of the IKEA family,” the company said.
At the same time, Ikea is planning to open stores in other Maharashtra cities including Pune where the company is scouting for real estate. The company will also be selling its products online in 14 districts of Maharashtra.
The furniture major emphasised that all its other units in India remain unaffected by this decision.
“India is a long-term priority for IKEA, and we will continue to invest in more growth avenues and job opportunities.”
