IKEA planning to launch its third store in Bengaluru, to invest Rs 1,000 crore

Planning to launch e-commerce services in India, the Swedish home maker furnishings retailer Ikea said it would commence operations by March next year. Ikea India Chief Executive Officer Peter Betzel also said that the company is planning to open its third store in India, in Bengaluru. The store, which will be a 5,00,000 sq ft facility will be open in the summer of 2020. He also added that the store is expected to receive a footfall of more than seven million per year.

The store will have a parking area with the capacity of around 2,000 vehicles along with a 1,000 seater restaurant that will serve Indian and Swedish delicacies.

With Karnataka being a priority market, Ikea will invest over Rs 2,000 crore in the state in the years to come.

In his statement to PTI, Peter Betzel also said, “Ikea will create a multichannel experience for its customers in India. It will launch e-commerce in Mumbai early next summer (March) and introduce other touch points to bring the brand closer to customers.”

A part of the Ikea’s third store’s ground-breaking ceremony, Betzel said that the company is in the process of connecting different platforms that it has including its online services, in order to maximize its business.

“Investments are going into the fulfilment part,” commented Betzel when questioned about the size of investments being made. Speaking further about the profits from the online trade, he added that the company is looking at the integration of both the platforms. However, an increased number of online orders are expected in the coming days.

“When Ikea will be profitable? I cannot tell now, but certainly we are aiming at profitability in coming years,” said Betzel about the profitability of the company as compared to already existing online giants like Flipkart and Amazon in India.