IKEA India may increase local production to cut retail prices, says CEO

In a bid to attract consumers amid inflationary pressures - which has squeezed household budget, IKEA India is planning to increase local sourcing and slash product prices, The Economic Times reported on July 28.

"We are working to see how fast we can increase our local sourcing because that has all the benefits of creating lower prices, taking away so much transport, sustainability, job opportunities and creating new production capabilities," the report said, quoting IKEA India chief executive Susanne Pulverer .

Reportedly, IKEA India has increased prices of some of its products due to rising inflation while also absorbing the high inflation costs on other products.

IKEA is globally popular  for its sprawling stores spanning 300,000 to 400,000 square feet usually located on the outskirts of the city.

Pulver said no one remains unaffected by what is happening in the world and it is the same for the company as well.

“We are trying to absorb as much as we can. We have also made some adjustments,” she said.

She added, “We were always striving to be affordable in order to protect lower prices in each segment, function and category. We have done some adjustments where it’s possible, and we have protected (price points) to be affordable at lower prices. "

The Swedish retailer is all set to open its fourth store in the country on Thursday, in the R city mall, Mumbai. This will be the third store in the city.

Also Read | Ikea to open third Mumbai store on July 28

Reportedly, even with three stores in Mumbai, it is not the end of its expansion plans in the city.

Pulver said, “We can’t say we are done. We know people live very locally and it’s very tough to commute. We need to be accessible. Mumbai is a big city of 21 million and we think we can do more.” However, she did not elaborate on further expansion plans. With the launch of the third store in Mumbai, IKEA will have five operational stores in the country.

IKEA India on July 28 will launch its second city store in Mumbai after Worli. The company also launched a large format store in Navi Mumbai in 2020.