Ikea India's bold promise: Operational profitability on horizon

Despite facing financial headwinds, Ikea India remains optimistic about its future in the country, outlining a clear path to operational profitability. Ikea India, Susanne Pulverer, operational profitability, Ingka Holdings, omnichannel growth, cost efficiency, expansion plans, Gurugram, Noida, online sales, Ikea Family, store openings, retail strategy, sustainable sourcing, investments, furniture retailer, Indian market, financial performance, retail sector, business strategy.

Ikea India's Path to Profitability

Ikea India CEO Susanne Pulverer announced that the company expects to achieve operational profitability within a couple of years. This announcement comes despite the company reporting a widening of losses to Rs 1,299.4 crore in FY24. Ikea plans to achieve this by maintaining low costs, enhancing operational efficiency, developing cost-effective touchpoints, and reducing expenses.

Expansion and Omnichannel Strategy

Ikea India is focusing on expanding its omnichannel presence, with online sales currently accounting for 30% of total sales and growing faster than offline sales. The company is also moving forward with its expansion plans, including Ingka Centres projects in Gurugram and Noida. The Gurugram project is expected to be operational by 2026, while the Noida project, which includes offices, a hotel, a shopping centre, and an integrated Ikea store, is still in its early stages.

Strategic Investments and Local Sourcing

Ikea has invested Rs 10,500 crore in establishing stores in Hyderabad, Navi Mumbai, and Bangalore, as well as a city store in Worli (Mumbai). Ikea is committed to local sourcing and currently sources 30% of its materials locally. The company has a workforce of nearly 3,000 employees and boasts a significant customer base, with over 180 million visitors across online and offline platforms and more than 2.5 million members in its 'Ikea Family' community.