IKEA reports $2.2 billion in US investment and 17 new locations

IKEA store reports $2.2 billion in US investment and 17 new locations | The Entrepreneur Review

IKEA, a large Swedish furniture retailer, is actively working to increase its presence in the United States.

The largest IKEA store operator, Ingka Group, which accounts for over 90% of the brand’s retail sales, revealed on Thursday that it expects to invest $2.2 billion over the next three years in the United States, which will be its biggest investment there to date.

Plan and Order Points

In the first phase of its strategy, the firm said it would update existing locations in the United States and create 17 new IKEA stores, including eight big-box retail locations and nine “plan and order points,” which are smaller storefronts where customers can receive guidance and place furniture orders.

The particular locations for the new IKEA stores in the United States are still being decided, according to Tolga ncü, head of IKEA Retail at Ingka Group, who also hinted that the company had its sights set on the South.

We see opportunities in every state in the U.S., but I’d say the South in especially because there is a lot of demand there that we haven’t yet been able to meet.

IKEA investing $2.2 billion in omnichannel growth strategy, eyeing U.S. consumers

Endless Opportunities to grow

“The US is one of our most important markets, and we see endless opportunities to grow there and get closer to the many Americans with affordable products and services,” said ncü in a statement.

More than ever, he added, “We want to grow the density of our presence in the US, scale up our fulfillment capabilities, and make our range even more relevant to local customers’ needs and dreams.”

Ingka mentioned IKEA stores that are already scheduled to open this summer in San Francisco and in Arlington, Virginia, in addition to the expansion that was announced on Thursday.

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