IKEA in talks for retail zones in cities

Company says land prices in Indian cities are so steep that retailers can't afford it

Swedish furniture retailer IKEA has held talks with the Union government, seeking separate zones for retail stores in cities, says Patrik Antoni, deputy country head.

Antoni said land prices in Indian cities were so steep that retailers couldn’t afford it. “If you create separate retail zones, retailers can easily buy or lease and shoppers can get down from metro stations, shop and return home,” he said.

Antoni said smart cities should have separate retail zoning. He lauded Maharashtra’s retail policy which promotes such zoning. Antoni said the more they source locally, the quicker they become profitable in the country.

He said IKEA would be a low priced, large volume player in the country. “Everything we do here is for local markets and exports,” he said.

IKEA is planning to open a store in Hyderabad at the end of next year and eventually, another in Mumbai in six months. It has already bought land parcels in both cities.

Speaking on competition from online furniture companies such as Urban Ladder, which is also setting up physical stores, Antoni said expansion of such retailers both online and offline would only expand the market.