IKEA’s first India store expects 5 million footfalls in first year : John

IKEA’s first India store expects 5 million footfalls in first year : John

Agency News

Hyderabad, Jan 31: Swedish Home furnishing retailer IKEA’s first India store here registered less than expected footfall during the last six months despite the buyers witnessed more than expected.

IKEA'S Hyderabad store, which opened in August last year, expected to witness five million footfalls during the first year of its opening against to host close to 7 million as expected earlier, IKEA India Manager (Hyderabad Store) John Achillea told reporters on the sidelines of launching a textile collection named “ ANAGLATARAR ,” A tribute to India, at its store here on Thursday.

Thousands of people are visiting the store and spending and buying more than we anticipated , he said This is good for IKEA because we are volume driven company. To a question, he said India as ‘ Price-sensitive’ market and as now the outlet sold half a million packs of four-spoon set (priced at Rs 15), the lowest price at the store during the last six-months and there is no other store across the globe sold such huge volumes.

Without disclosing the value sales during the six-months, Johan said that products with a volume of 80,000 square metres were sold. IKEA's range of products were lowest in many categories in the market, he said that 95 per cent of the products sold in India were the same available at IKEA stores around the world and about 5 per cent were specifically meant for India like spoons, "tawa" and other accessories.

To another question, John said IKEA would open its second mega store in Mumbai during 2019 followed by Bengaluru and Delhi NCR.

Earlier, IKRA India Country communication and Interior Manager Mia Olsson, said: "This collection( ANGLATARAR) mark the celebration of design aesthetics from both countries" and is a tribute to India.

Anglatarar is designed by two young designers from India and Sweden and is developed in Panipat, Haryana, she said the collection is an interesting interplay of both ‘cool’ and ‘earthy’ tones such as Indigo and red, against a neutral base of white.

The colours have been carefully selected and carry a deeper meaning with both countries ‘ rich heritage and history, she added.

Currently, IKEA have 423 stores in 51 countries with a sales volume of 38.3 billion euros. 936 million customers visited IKEA stores in FY17 and more than 2.3 billion people visited IKEA online.

It has been sourcing from India for over 30 years for its global stores and currently has more than 50 suppliers with 45,000 direct employees and 400,000 people in the extended supply chain.

The IKEA Group is the first major single-brand retailer to get FDI approval and plans to open several stores across the main metro cities in India. (UNI)