Delhi-NCR, August 2025 – Swedish home furnishing giant IKEA has officially marked its entry into North India with the opening of its first city-format store in Pacific Mall, Tagore Garden, Delhi. This move comes after the successful launch of IKEA’s online delivery services in Delhi-NCR earlier this year, backed by a state-of-the-art 180,000 sq. ft. Customer Distribution Centre (CDC) in Gurugram.
IKEA’s Delhi Expansion – Step-by-Step
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E-Commerce Rollout (March 2025)
IKEA began serving customers in Delhi-NCR and nearby cities like Agra, Jaipur, Amritsar, and Lucknow through its online platform, enabling next-day delivery for thousands of products. -
First Physical Store in Delhi (August 2025)
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Size: 15,000 sq. ft.
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Location: Pacific Mall, Tagore Garden
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Assortment: Over 2,000 products, with 800 available for immediate takeaway
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Additional Facilities: Swedish Café, digital planning tools, home delivery & assembly services.
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Upcoming Large-Format Stores
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Gurugram Store: Expected by 2026, inside an Ingka Centre.
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Noida Store: Planned for Sector 51 by 2028.
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Local Sourcing & Affordability Push
IKEA is increasing local sourcing from 30% to 50% in India, working with over 40 Indian suppliers. This strategy supports affordable pricing, strengthens the domestic manufacturing ecosystem, and creates more job opportunities.
Impact on the Indian Market
1. Boost to Organized Furniture Retail
IKEA’s entry is accelerating the growth of organized furniture retail in India, pushing the market toward modern retail formats and challenging unorganized players.
2. Urban-Centric Design Approach
Compact, multifunctional furniture and culturally adapted designs (including Diwali-themed textiles and Indian café menus) are attracting urban middle-class buyers.
3. Supply Chain Transformation
The Gurugram CDC enables fast last-mile delivery, improving customer experience and setting new industry benchmarks in logistics efficiency.
4. Competitive Pressure on Domestic Brands
Local players like Pepperfry and Urban Ladder are expected to enhance their offerings, pricing, and online strategies to compete with IKEA’s global standards.
5. Digital & Service Expectations Rise
With 20% of sales from online channels, IKEA is raising expectations in digital retail experience, including assembly services, AR-based room planning, and easy returns.
Market Outlook
The Indian furniture market, projected to grow beyond $40 billion by 2025, will witness faster adoption of organized retail, better supply chain integration, and more customer-centric innovations. IKEA’s expansion in Delhi-NCR is a signal of confidence in India’s growing urban consumer base and the nation’s capability to become a global sourcing hub.
💡 Key Takeaway: IKEA’s Delhi launch is more than just a store opening – it’s a strategic move that blends global efficiency with local customization, reshaping how India shops for furniture.
