The store, besides offering a wide range of home furnishing solutions, will also have a 1,000 seater restaurant serving Swedish and Indian delicacies.
In January, New Zealand hopes for an Ikea store were elevated when it was revealed architecture, retail design and property consulting firm RCG has been working with the company on a market research project in this country. IKEA has been sourcing from India for close to 35 years for its global stores. This city is truly cosmopolitan with many people moving in to find new opportunities. Its economic development agency invited Ikea scouts to visit the city, but the response was reported to be lukewarm. That is, if Ikea has a strong interest in entering the New Zealand market, they may not do so with their traditional mega stores but through alternative touch points.
The smaller Ikea stores cropping up in central urban locations are also providing new opportunities for the company to increase sales and customer engagement.
Ikea is not listed and as a result it is not obligated to publish its net profit or other financial details. Besides its big format stores, IKEA will create a multichannel experience for its customers in India.
Ingka Group said in a separate statement that its full-year sales rose to €34.8 billion from €34.1 billion a year earlier. The company's 400,00 sq ft outlet in Hyderabad opened after several delays though, of which the most recent ones were a push in its launch date from 2017 end to this year, and then a near 20-day postponement to August from July. That includes a new store that was opened in Bahrain in September, Inter Ikea said.
IKEA store in Bengaluru is expected to attract more than 7 million visitors per year. Online purchases now make up 5% of global Ikea sales, the company said.
However, the company expected high number of online orders in coming days, he added.
"We're very excited to open in South America", Loof said.
Betzel, who attended the ground-breaking ceremony of Ikea's third India store here Thursday, said the company already had an online platform and was now in the process of connecting different platforms to maximise business prospects. That means new Ikea franchisees should be able to "reach bigger volume faster with lower costs", Loof said.