Global furniture retailer IKEA’s India arm has picked up over 37,250 sq ft of retail space at Phoenix Marketcity mall in Pune’s Viman Nagar locality through a long-term lease as part of its ongoing expansion drive to strengthen its physical retail footprint in key cities across the country.
IKEA India has entered into a lease agreement with Phoenix Mills’ subsidiary Vamona Developers, the mall’s developer and operator, for retail space on the ground floor of the mall.
The premises will be occupied for a lease term of four years and 11 months, with a starting monthly rent of Rs 38.12 lakh, showed data from registration documents accessed through realty data analytics platform CRE Matrix. The lease was registered on October 15 and it attracted a stamp duty of Rs 6.27 lakh.
“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,” said an IKEA spokesperson.
The deal marks another key offline retail commitment by IKEA, which has been expanding its presence across India through a combination of large-format stores, city-centre outlets and digital channels.
In August, ET had reported that the Swedish company is gearing up for its ‘second wave’ of growth in India, with an accelerated expansion plan backed by stronger local sourcing, robust logistics and a deeper omnichannel strategy after investing over Rs 10,500 crore in the first phase, quoting IKEA India CEO Patrik Antoni.
As part of this renewed push, IKEA plans to add four to six new customer touchpoints in India every year, a sharp step-up from its earlier pace of opening one store every year or two.
ET’s email query to Phoenix Mills remained unanswered.
IKEA, part of Ingka Group, currently operates large-format stores in Hyderabad with 480,000 sq ft space, 530,000 sq ft in Navi Mumbai and 460,000 sq ft in Bengaluru. Along with these, it also operates smaller city stores in Mumbai, Bengaluru and Delhi, and runs an e-commerce presence across over 70 markets.
The brand has been focusing on key metro and tier-1 markets to deepen customer reach and drive omnichannel growth.
Industry experts said the deal underlines the strong demand for high-quality retail space in established malls, even as global brands continue to bet on India’s consumption story and expanding middle-class base.
IKEA India has entered into a lease agreement with Phoenix Mills’ subsidiary Vamona Developers, the mall’s developer and operator, for retail space on the ground floor of the mall.
The premises will be occupied for a lease term of four years and 11 months, with a starting monthly rent of Rs 38.12 lakh, showed data from registration documents accessed through realty data analytics platform CRE Matrix. The lease was registered on October 15 and it attracted a stamp duty of Rs 6.27 lakh.
“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,” said an IKEA spokesperson.
The deal marks another key offline retail commitment by IKEA, which has been expanding its presence across India through a combination of large-format stores, city-centre outlets and digital channels.
In August, ET had reported that the Swedish company is gearing up for its ‘second wave’ of growth in India, with an accelerated expansion plan backed by stronger local sourcing, robust logistics and a deeper omnichannel strategy after investing over Rs 10,500 crore in the first phase, quoting IKEA India CEO Patrik Antoni.
As part of this renewed push, IKEA plans to add four to six new customer touchpoints in India every year, a sharp step-up from its earlier pace of opening one store every year or two.
ET’s email query to Phoenix Mills remained unanswered.
IKEA, part of Ingka Group, currently operates large-format stores in Hyderabad with 480,000 sq ft space, 530,000 sq ft in Navi Mumbai and 460,000 sq ft in Bengaluru. Along with these, it also operates smaller city stores in Mumbai, Bengaluru and Delhi, and runs an e-commerce presence across over 70 markets.
The brand has been focusing on key metro and tier-1 markets to deepen customer reach and drive omnichannel growth.
Industry experts said the deal underlines the strong demand for high-quality retail space in established malls, even as global brands continue to bet on India’s consumption story and expanding middle-class base.
