IKEA, the world-renowned Swedish furniture chain, has revealed its plans to invest a staggering $2.2 billion over the next three years in expanding its presence within the United States market. The move comes as a bold statement of confidence by the company amidst widespread store closures among big retailers across the nation.
The expansion will include eight new large-format stores offering "the whole menu of the IKEA experience," along with nine Plan & Order locations and 900 additional pickup locations for customers seeking more convenient online shopping options. This significant investment is set to create more than 2000 jobs throughout various regions in America.
"IKEA has had a 'love relationship' with the U.S., and we believe there is still plenty of room for growth," said Ingvar Kamprad, founder of IKEA Group. He added that this substantial investment signifies their commitment to furthering their omnichannels growth strategy within this key market.
The first Plan & Order point is scheduled to open later this year in Arlington, Virginia, followed by many more locations both nationwide and along the east and west coasts specifically. These smaller-format stores will focus on providing personalized assistance for bigger home projects such as kitchen or bathroom remodels—an extension of their existing planning studios concept.
As part of strengthening their logistics network, IKEA also intends to bolster fulfillment capabilities at existing stores while ensuring seamless integration between newer pickup points and larger retail outlets.
While exact store locations are yet to be confirmed, Ingka Group's reported sales figures show that they brought in €5.5 billion ($6 billion) from American consumers alone last financial year—with current franchises expected to propel them past Germany as IKEA's largest market soon enough.
With such an ambitious plan set into motion against all odds amid an uncertain retail landscape, industry experts eagerly await how other major players may respond to IKEA's $2.2 billion vote of confidence in the American market.