Swedish furniture company IKEA said on Thursday that it will close its shop in Mumbai’s R City Mall by the middle of the year owing to layout, design and location limitations. The 70,000-square-foot store, which debuted in June 2022, provides a limited variety of IKEA products, according to the release.
“IKEA has taken a strategic business decision to discontinue its IKEA R-city operations by mid this year and consolidate its Mumbai operations to IKEA Worli, IKEA Navi Mumbai and online presence,” it said.
The IKEA R-city store was launched as one of the new-format small store.
“We have not been able to provide customers the full IKEA experience due to limitation of the layout, design, and location,” it said.
However, Mumbai is a crucial market for the firm in India and IKEA will continue to invest in the market to reach the city’s numerous clients as well as other regions of Maharashtra, according to the statement.
“This strategic decision aligns with our goal to have a leaner and faster IKEA Retail business, maintaining our commitment to our vision, values, and culture,” it said.
IKEA now has three big-format shops in India: Hyderabad, Navi Mumbai, and Bengaluru, as well as two small stores in Mumbai.
It also intends to establish outlets in Delhi-NCR and a retail mall in Gurugram.
Regarding the employees at IKEA R City Mall, the firm stated, “We deeply value our co-workers, and it is our top priority to support them during this transition. All IKEA co-workers will be offered equal opportunities for their next assignments in Mumbai and our other Units, ensuring their seamless transition.”
“Our hope is that they will continue their journey with us at IKEA,” it said.
