Ikea Bets Big on India Amidst Global Slowdown

Ikea is intensifying its focus on India as a priority market, planning to open around 30 new stores within the next five years. This expansion includes a mix of large and small retail formats, alongside pick-up points for online orders, signaling a robust long-term strategy for the country.

The Swedish furniture giant sees India not only as a significant retail opportunity but also as a strategic base for exports. The recent finalization of the India-EU free trade agreement is expected to bolster India's role as a production and export hub within Ikea's global network.

Currently, 30% of Ikea's Indian sales involve locally sourced materials, a figure the company intends to raise to 50% by 2030. This growing local sourcing ecosystem is supported by increasing domestic demand and favorable export policies.

While India represents a key growth area, Ikea has experienced a sales decline globally, with retail sales falling to 44.6 billion euros in the financial year ended August 31, 2025. Concurrently, growth in China has slowed considerably, leading to the closure of seven large-format stores in favor of smaller outlets.