Dive Brief:
- Following its store openings last year, Ikea plans to open eight new locations across the U.S. this year, the furniture retailer announced Thursday.
- The retailer plans to open new specially formatted stores in Pennsylvania, Maryland, Oregon and Arizona, as well as three new locations in California this spring and summer, the release said.
- Seven of the eight new locations will feature “Plan & Order points with Pickup” where shoppers can pick up their items when and where it’s convenient for them.
Dive Insight:
Ikea’s store openings are part of its multibillion-dollar investment strategy to expand its store fleet.
In 2023, the furniture retailer said it planned to pour more than $2.2 billion into its business over the next three years to open more stores and improve its fulfillment network. The year prior, Ingka Group, the retailer’s largest franchisor, said it planned to invest another 3 billion euros into new and current locations in the U.S., France, Finland, Canada, Germany and Spain.
In January 2024, the company announced plans to open four Plan & Order points with Pickup locations in Texas, Georgia and California. Those four store openings followed its previous plans to open similar store formats in Texas and Maryland.
In July, Ingka Group unveiled its plans for a mixed-use commercial building in Manhattan as part of its strategy to enter more urban spaces. The company said it would allocate 80,000 square feet toward a two-level customer meeting point.
So far, its investments appear to be paying off. The retailer said its market share grew by 13.6% over the past five years, per the press release.
“Our strategy continues to prioritize our customer’s needs, and in FY24, we continued to make everyday living more accessible, especially during a time when we know economic challenges are leading to a decrease in disposable income for many Americans,” CEO and Chief Sustainability Officer Javier Quiñones said in a statement. “As we gear up for the 40th anniversary of Ikea U.S. in 2025, we’re committed to reaching even more customers where they are.”