Ikea India Prioritizes Food to Boost Store Traffic and Customer Engagement
Food takes centre stage in Ikea India’s growth strategy
Mint
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Ikea India is focusing on its food and beverage offerings to drive customer traffic and engagement in stores. With food accounting for nearly 10% of its business, the company aims to localize menus and enhance the shopping experience, while addressing a reported net loss of ₹1,325.2 crore for 2024-25.
- 01Food accounts for nearly 10% of Ikea India's business.
- 02The company reported a net loss of ₹1,325.2 crore for 2024-25.
- 03Ikea India aims to localize its food offerings to cater to regional tastes.
- 04The F&B sector is expected to grow its share of retail leasing from 16% in 2023 to 22% in 2025.
- 05Ikea's pricing strategy includes affordable items like hot dogs priced at ₹69.
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Ikea India is strategically enhancing its food and beverage (F&B) offerings as a key driver for customer traffic and engagement in its stores. According to Adosh Sharma, the country commercial manager, food is a significant reason customers visit Ikea, contributing nearly 10% to the company's business. The company reported a widening net loss of ₹1,325.2 crore for the fiscal year 2024-25, alongside a 3.33% decline in revenue from operations to ₹1,749.5 crore. To address this, Ikea is localizing its menu to reflect Indian tastes, with affordable options such as hot dogs priced at ₹69 and chicken meatballs selling over 300,000 units in 2024-25. This approach not only increases customer dwell time by about 2 hours but also encourages repeat visits, as shoppers often leave with additional purchases. The F&B sector is also playing a crucial role in retail real estate growth in India, with its share of overall retail leasing projected to rise from 16% in 2023 to 22% in 2025. As consumer behavior shifts towards experience-led shopping, Ikea aims to leverage food as a long-term strategy to drive store traffic and enhance customer loyalty.
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Ikea India's focus on affordable food options aims to attract more customers to its stores, potentially increasing sales and improving overall business performance.
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