🔨 It’s A Two-Way Love Between IKEA And Indians
Seems like Swedish home furnishing retailer, IKEA, has a huge fan base in Bengaluru. Promising and enthusiastic customers flocked its newest store, which opened in Nagasandra, Bengaluru, last week — so much so that they were ready to wait for almost 3 hours at the store. Meanwhile, given the rush, the guards had a tough time tackling the crowd.
Notably, this is IKEA’s 4th outlet in India and the largest so far. Spread over 460,000 sqft, IKEA hired nearly 1,000 people to manage this store — out of which 70% are locals.
Followed by the news, the Indian arm of the retailer announced plans to shift its purchasing office from Gurugram to Bengaluru from May 1, 2023. It cited the reasons for wanting its purchasing office to be near the other entities (like Retail, Global Business Operations) and its many customers there.
Additionally, the decision to relocate to the tech hub is backed by the fact that rental spaces are more affordable and bigger than in Mumbai, where IKEA has 2 stores.
As employees will have to relocate to Bengaluru, IKEA will provide them with relocation support under the “relocation policy.” Employees who decide to stay back will be supported by jobs within the company or with external job coaching.
Always Good To Go Local
To combat the rising inflation and the average Indian getting more conscious about non-essential spending, IKEA India plans to source more products locally. It has been sourcing products for its global supply chain from India (almost 25% to 27%) for the 5 decades now — spanning industries like textile, carpet, mattress, home accessories, plastic, and metal products.
The move was inevitable, as IKEA had already faced the brunt of the pandemic. Its Mumbai store was closed down, and online operations were halted under the lockdown measures. This led to a widening net loss of Rs.807.5 Cr in FY 21, from Rs.720.7 Cr in the previous year.
Too long? Here’s a one-liner: IKEA’s newest outlet in Bengaluru witnesses some serious weekend rush; plans to shift purchasing office from Gurugram to Bengaluru and source more products locally within India.
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