Swedish furnishings giant IKEA is slated to open its sixth physical store in India in the coming months, debuting in Pune. The firm's India arm has leased 37,259 square feet space at the Phoenix Marketcity shopping mall in Viman Nagar, eastern Pune, for a starting monthly rent of Rs 38 lakh, according to registration documents accessed by CRE Matrix.
The documents state that the lease is valid for 59 months, located on the ground floor of the property. IKEA will also pay an enhanced lease rent of Rs 42.70 lakh per month from the 37th month of the lease.
Phoenix Marketcity is owned by real estate firm Phoenix Mills Ltd, which also owns the Phoenix Mall of the Millenium in Wakad, a western suburb in Pune. The firm also owns prominent malls in Mumbai, Bengaluru, Indore, and elsewhere, and is expanding its footprint in cities like Kolkata.
IKEA, which is known for its extensive furnishings range, and also has a following for its food and beverage offerings, has three large format stores in India, with its first such store in Hyderabad, followed by Bengaluru and Navi Mumbai. It also has two smaller "city stores" at Worli in Mumbai, and at the Pacific Mall in west Delhi.
The company also had a store in Ghatkopar, which has subsequently been closed in line with a rationalisation exercise. IKEA's upcoming store in Pune is expected to be in the firm's "city store" format.
In a statement, IKEA confirmed its plans to open a store in the Pune market, noting that it already has a presence in the city, through e-commerce channels. The firm also noted that part of its clientele at the Navi Mumbai store have also been from Pune, due to the relative proximity between the cities.
"Pune has been an important market for IKEA India and one where we’ve seen strong demand from our customers right from the start. We launched our e-commerce presence in Pune in January 2020- making it the second market in India to access the full IKEA range online before a physical store opened...Given its proximity to Navi Mumbai, many customers from Pune have also embraced the IKEA Navi Mumbai store experience..." said a spokesperson for IKEA.
The spokesperson added, "Pune continues to be a priority market for us, and we are now excited to bring a more dynamic IKEA experience through a true omnichannel presence in the city- starting with a city store. We will be able to share more details once we are ready to announce".
Besides the upcoming store, IKEA has a distribution centre in Chakan, near Pune, through which it services its western and southern markets. In the north, the firm has an outsourced distribution centre in Haryana, through which it plans to service its upcoming stores in the National Capital Region.
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