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Ikea plans to invest billions U.S. market, including new stores

Ikea plans to invest billions U.S. market, including new stores
Posted at 7:35 AM, Apr 21, 2023

Ikea announced it would invest more than $2.2 billion into upgrading its stores and adding more than a dozen new locations around the U.S. It will also provide more pick-up options for online orders and work to strengthen its product offerings.

The Swedish-based retailer called the plan the largest investment Ikea has made in the U.S. since opening its first American location in 1985 in the press release. According to Forbes, the push makes sense, since American stores account for 14% of Ikea’s market share. Only Germany ranked higher, at 14.4%.

Customers can expect the following from Ikea’s new growth plan:

  • Eight new stores (locations are yet to be announced)
  • Nine new “Plan & Order” locations, a newer store format that offers customers integrated design, shopping and shipping help
  • Nearly 2,000 jobs will be added to the company’s payroll with these new store formats
  • 900 new Pick-Up locations for online orders
  • Faster, more effective home delivery options for its customers

Ikea says it will start working on these changes soon and keep customers updated on expansion progress during its record-breaking initiative.

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In 2020, Ikea took in $4.7 billion in total sales just in the U.S., and that number appears to only have increased since then. After all, 14% of the $48.97 billion that the company took in worldwide last year (as reported by the Charlotte Observer) is around $6.8 billion.

According to The Wall Street Journal, Ikea currently has 51 locations in the U.S., not including two new stores opening soon in Virginia and California.

The company said improving access to its stores across the U.S. would help build on its financial success.

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“We know U.S. customers have a strong desire for more ways to shop and experience IKEA, and this growth plan will allow us to meet that need,” said Javier Quiñones, CEO and chief sustainability officer, Ikea US, in the press release. “We are committed to continuing to grow in this market with our thousands of co-workers and millions of customers who look to IKEA for home furnishing inspiration and solutions at an affordable price.”

Over the coming years, customers can also expect to see Ikea working to meet its clean energy goals — it says it wants to be “climate positive” by 2030. It is also working to improve its As-is online program and expand the Buy Back & Resell program.

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