Ikea scouts for ‘right’ location for storeshttps://indianexpress.com/article/news-archive/web/ikea-scouts-for-right-location-for-stores/

Ikea scouts for ‘right’ location for stores

The most important priority is to find the right location for our stores at the right price in major cities.

Swedish retailer Ikea is scouting for “the right location” in “major cities” and is in talks with authorities to get a better understanding of the states and share its business models.

“In India,we are currently defining the entry plan for Ikea. The most important priority is to find the right location for our stores at the right price in major cities,with easy access to public transport (metro) and good road network,” the retailer said in a statement,announcing a 3.1 per cent jump in its global sales to euro 27.9 billion between September 2012 and August-end.

Currently,the company’s investment in India is the largest in the single-brand segment ever since the government allowed 100 per cent foreign investment in the sector last year.

The statement comes at a time when the multi-brand retail sector,thrown open for 51 per cent FDI last year,is still waiting for investments to come by. In fact,Walmart,which had been keen on entering the sector,called off its seven-year-old joint venture with Bharti Enterprises,saying that it was “not tenable”.

Ikea has already set up a new product development centre in the country. It is focussing on textiles,along with wood,metal,plastic and lighting,the statement said.