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Apr 20, 2023 · Getty Images. IKEA is planning to open eight new stores in the United States and expand its fulfillment network in its biggest investment ever in the U.S. market. The $2.2 billion plan over the ...
- Joan Verdon
- Overview
- Adapting to Americans
Ikea plans to open 17 new stores across America in a major push to expand its U.S. business, the Swedish home goods company announced Thursday.
The retailer will spend more than $2.2 billion over three years growing its U.S. presence, with a focus on entering new markets in the South, the company said. Ikea will also work to improve its ability to fulfill and deliver customer orders in a bid to capture greater market share.
The company didn't disclose where around the country it would build the new stores. The locations will include eight full-size stores and nine "Plan & Order" points, an Ikea representative told CBS MoneyWatch. Ikea expects the additional outlets will add create a total of 2,000 jobs.
Ikea has 51 stores in the U.S. The new openings will form part of a multi-phase plan to expand the retailer's footprint in the U.S. over the next decade, Tolga Öncü, head of Ikea Retail, Ingka Group, said in a statement. After the expansion, the U.S. will likely become Ikea's largest market, surpassing Germany, he said.
Ikea is aiming to diversify its global revenue and boost profits as lingering inflation causes shoppers to tighten their purse strings in some parts of Europe. In the U.S., that means adapting the company's business model to the needs of American consumers, in part by giving people more delivery and pickup options, the company said.
More than half of the new U.S. stores will be Plan & Order points, smaller outlets dedicated to kitchen, bedroom and living room projects, according to Ikea. Those locations will offer a more intimate shopping experience, including free appointments with the company's design personnel.
"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," U.S. CEO and Chief Sustainability Officer Javier Quiñones said in a statement.
The company will also create 900 new pick-up locations where customers can collect their online orders. Today, about 25% of overall furniture sales and 20% of all retail sales in the U.S. take place online, UBS recently found. The investment bank expects more than one-third of furniture sales to be online by 2027.
Ikea's move to strengthen its delivery services could give its business a boost in the U.S., where the infrastructure to connect rural and suburban areas to mega stores is lacking, Neil Saunders, managing director at data analytics company GlobalData, said.
Big stores "work well in population-dense countries like the UK, but are less effective in the U.S. where, outside of cities, people are more scattered and drive times can be extensive," Saunders said in an email.
Apr 20, 2023 · Ikea is planning to splash €2 billion ($2.19 billion) to expand its furniture empire in the United States in what will be the retailer’s biggest-ever investment in a single country.
IKEA U.S. announces plans to open four new-format stores in 2024 and shares progress made in FY23. After reporting a record year in sales, IKEA U.S. releases its FY23 Annual Summary highlighting the company’s commitments to becoming more affordable, accessible and sustainable. Conshohocken, PA – January 17, 2024 – Today, alongside the ...
Apr 20, 2023 · Published April 20, 2023 10:49 a.m. PDT. Share. Ikea is planning to splash €2 billion (US$2.19 billion) to expand its furniture empire in the United States in what will be the retailer's biggest ...
May 16, 2023 · The brand, which currently has 51 locations in the United States, recently announced they are opening up seventeen new stores across the country over the next three years, including eight complete IKEA stores and nine Plan and Order points, where you can design your next kitchen, bedroom, or living room. So hopefully no matter where you live ...
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Apr 20, 2023 · IKEA is investing $2.2+ billion in the company’s omnichannel growth strategy in the United States over the next three years. As part of the investment, IKEA will open new stores and locations to meet customers, strengthen its fulfillment network to secure better delivery options and provide a product offer that reflects the needs of life at home in different regions across the country.
