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Swedish furniture giant IKEA is trialling a new store format that could dramatically reshape its retail strategy in India. Known as the ‘barn’ format — from the Swedish word for “child” — the compact, streamlined store model is currently being piloted in the UK, Poland, and Texas, with plans for a global rollout by the end of 2025.
Unlike IKEA’s traditional sprawling warehouses, the barn format focuses on accessibility and speed. Stores will range from 2,500 to 10,000 square meters and offer a curated selection of home accessories and essential furniture pieces, with the bulk of products available through next-day delivery. Even the iconic IKEA food experience is being trimmed to just three menu items, creating a “grab-and-go” experience aimed at convenience-driven shoppers.
Tolga Öncü, Head of Retail at Ingka Group, IKEA’s largest franchisee, said the format is designed to reach neighborhoods underserved by existing stores — without cannibalizing them. “This allows us to get closer to customers, making IKEA more accessible and affordable,” he said.
The most ambitious rollout may come in India, where IKEA currently has a limited presence with just a handful of large-format stores. Executives believe the barn model could allow the company to open up to 100 stores across Indian cities in the first year alone.
Such an expansion would position IKEA as a mass-market player in India’s fast-growing home and lifestyle segment, tapping into a young, urban consumer base looking for functional, affordable design — without the long commutes to big-box outlets.
Smaller store sizes mean reduced real estate costs, faster deployment, and a lighter logistics footprint — all critical advantages in a market like India. The strategy mirrors successful retail trends where convenience, speed, and local presence are key.
Industry experts say the move could set a new standard for global retailers operating in emerging markets. “If IKEA can scale this effectively in India, it will be a game-changer — not just for them, but for how international brands think about expansion,” said a retail analyst.
As testing continues, all eyes will be on how the barn format performs — and whether IKEA’s big bet on going small will pay off in one of the world’s most dynamic retail landscapes.
