IKEA opens first city store in Delhi, targets 50% local sourcing in long-term India plan

IKEA India has taken another step in its North India expansion journey with the launch of its first physical store in the Delhi region — a 15,000 sq. ft. city-format outlet at Pacific Mall, Tagore Garden. The opening follows the brand’s online launch in the NCR in March this year and marks a key milestone in IKEA’s omnichannel strategy.

The new store offers over 2,000 home furnishing products on display and nearly 800 available for immediate takeaway, alongside digital planning tools, interior advice services, and the brand’s signature Swedish Café. Larger items can be ordered online for home delivery, blending physical and digital shopping for customers in West Delhi and surrounding areas.

“This is the first in a long row of stores to come,” said Sussane Pulverer, outgoing CEO & CSO, IKEA India, in an exclusive interview to CNBC-TV18. “Since launching online in March, we’ve learnt a lot about Delhiites’ preferences. Now they can physically experience our products and solutions, and we are very happy to be here today.”

Incoming IKEA India CEO Patrick Antoni told CNBC-TV18 the company has “cemented its foundation” over the past few years and is now accelerating expansion. “We have a very solid plan with many more touchpoints at a higher speed than before. We’re strengthening our supply chain, doing more in India, and aiming to provide more affordable products to more people,” Antoni said, adding that customer satisfaction levels in India are among the highest for IKEA globally.
The Delhi city store is part of a broader “One Click, 30 Minutes Away” strategy, which combines e-commerce, large-format experience stores, smaller city outlets, and specialised Plan and Order Points. Two full-format stores in Gurgaon and Noida are already under development.

On the supply chain side, Pulverer said IKEA aims to increase its local sourcing share from around 30% to 50% over the long term, citing affordability, sustainability, and job creation as key goals. “It will take time to build the sustainable raw material ecosystem needed, but we believe it’s the right thing for India and for the furniture category,” she said.

Addressing profitability concerns after a 5% revenue rise last year but widening losses, Pulverer emphasised that losses are in line with IKEA’s long-term investment plan for new markets. “We will continue to focus on low cost as we are an affordable brand, and build volumes to reach the targets we have set,” she noted.

Antoni declined to give revenue projections but said Delhi, “likely the biggest home furniture market in India,” is expected to become one of IKEA’s top two markets nationally.

With the Pacific Mall launch, IKEA India is betting on accessibility, affordability, and localisation to deepen its reach in one of the country’s most competitive retail landscapes.

Also Read: ASICS targets 200 stores in India by 2026