IKEA unveils $2.2 billion U.S. expansion plan

 Over the next three years, IKEA's largest retailer plans to invest $2.2 billion in the U.S.

Photo By IKEA

Ingka Group, the largest IKEA retailer, announced April 20 an investment of more than $2.2 billion in omnichannel growth in the United States over the next three years. The company plans to open eight new stores and nine other facilities.

Marking its largest investment in almost four decades of operating in the US, the company plans to open new stores and locations, improve its fulfillment network to secure better delivery options, and develop a product offering that “reflects the needs of life at home in different regions across the country.”

“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 Tolga Öncü, head of IKEA Retail, Ingka Group, in a statement. “More than ever before, we want to increase the density of our presence in the US, ramp up our fulfillment capacities, and make our range even more relevant to local customers’ needs and dreams."

According to the Wall Street Journal, the Swedish furniture giant is one of several European retailers, including Zara owner Inditex SA and toy maker Lego A/S, looking to the U.S. as a reliable source of growth.

U.S. demand for IKEA products has been strong this year, WSJ reported April 20, helped by the easing of global supply-chain blockages that dogged the company in recent years. Economic uncertainty also plays into the hands of IKEA, as a closely held company focused on affordable products, Oncu told the journal.

In the first phase, the company anticipates opening eight new stores and nine plan and order points, creating over 2,000 jobs. In addition, IKEA US has also announced new locations in San Francisco, California, and Arlington, Virginia, set to open this summer.

Javier Quiñones, CEO & Chief Sustainability Officer, IKEA US, said that this growth plan will meet the need of U.S. customers who are looking for more ways to shop and experience IKEA.

“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,” he said. “Our priority is to become more accessible while staying as affordable as possible for the many people, which is especially important given the increasing costs of living."

The US investment push ties into Ingka Group’s continued focus on omnichannel growth and expansion across the world. In Spain, the company is investing EUR 150 million in opening many new locations around the country by 2025. It is expanding substantially in the UK and London, where it will open a city store on Oxford Street – its second in the capital. In Austria, in just three years, the biggest IKEA retailer has increased the number of stores and planning studios from 8 to 45, making IKEA more accessible than ever before there.

This latest investment in the U.S. will also further modernize existing stores so that they have a dual role – to offer inspiration and home furnishing expertise while also increasing their handling capacity for parcel deliveries directly from the store. The company will continue to build more effective replenishment and fulfillment capabilities while transforming last-mile deliveries to ensure faster, more sustainable, and more affordable deliveries.

Ingka Group will also explore new opportunities in clean energy, circularity, and affordable housing around the US. As IKEA works toward its goal to be climate positive by 2030, it will increase solar and geothermal technology in locations whenever possible, transition to EV trucks to support fulfillment and delivery and reduce waste.


Have something to say? Share your thoughts with us in the comments below.

Profile picture for user larryadams
About the author
Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).