IKEA to invest 1000 crore in its third India store in Bengaluru, to open by 2020

business

Updated: Oct 12, 2018 08:52 IST

Swedish home furnishings retailer Ikea would commence its e-commerce operations in the country by March next year, Ikea India Chief Executive Officer Peter Betzel said Thursday. He also said Ikea’s third store in India, in Bengaluru, will be a 5,00,000 sq ft facility and would be opened in summer 2020. The store was expected to attract more than 7 million visitors per year, he said.

It will also have parking space for around 2,000 vehicles and a 1,000 seater restaurant serving Swedish and Indian delicacies, he added.

The company also said Karnataka is a priority market and that it will invest over Rs2,000 crore in the state in the long term.

“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,” he told PTI here.

Betzel, who attended the ground-breaking ceremony of Ikea’s third India store here Thursday, said the company already had an online platform and was now in the process of connecting different platforms to maximise business prospects.

Asked about the size of investment made in building the IT infrastructure, Betzel said “investments are going into fulfilment part.” On whether online trade would be their focal point to generate revenues in coming days, Betzel said Ikea was looking at total integration of both platforms.

However, the company expected high number of online orders in coming days, he added.

Replying to a question when the company expects its venture to be profitable in view of fierce competition from e-retailer majors like Amazon and Flipkart-Walmart, Betzel said Ikea was certainly looking at profitability by developing the business online with physical meeting points.

“When Ikea will be profitable? I cannot tell now, but certainly we are aiming at profitability in coming years,” he added.