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Ikea is exploring possibilities of building shopping malls and entertainment facilities next to some of its upcoming standalone stores, or developing multi-storey shopping centres with Ikea as an anchor store, depending on land availability, they said. The company will lease out mall space to other brands and retailers.
Ikea’s sister concern Ingka Centres (formerly Ikea Centres) owns 44 such ‘retail parks’ in Europe, China and Russia.
“Ingka Centres is interested in developing similar retail parks here,” one of the persons said. “This (India) is a market they want to explore as India has a huge potential for retail.”
India’s $792-billion retail market is expected to grow 12-14% over the next three years to more than $1 trillion, according to Care Ratings.
The other person said Ingka Centres would explore possibility of developing its first retail park in Gurgaon where the Swedish furniture and home products retailer purchased a 10-acre land for Rs 842 crore in 2018, in the single-largest property auction for the Haryana Urban Development Authority. Ikea has yet to start construction at the site. “Ikea’s plan is to develop it into a retail destination with its store as anchor and other retailers and restaurants to give a composite retail experience,” the person said.
Ikea did not respond to questions regarding its possible foray into mall development in India.
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