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IKEA investing $2.2 billion to expand its US footprint

The company said it plans to open eight new stores and nine "Plan & Order" points, creating 2,000 new jobs overall.
IKEA investing $2.2 billion to expand its US footprint
Posted at 6:21 AM, Apr 21, 2023

The Swedish furniture chain IKEA announced plans Thursday to invest $2.2 billion in a major push to expand its business in the United States over the next three years.

In a press release, the company said it plans to open eight new stores and nine "Plan & Order" points, which are smaller stores where customers can get design ideas for their homes and place orders.

"The U.S. 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.

IKEA didn't disclose the locations of all the new stores, but said it will open new stores this summer in San Francisco and Arlington, Virginia. The company said the additional outlets would create more than 2,000 new jobs.

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"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," said Javier Quiñones, CEO and chief sustainability officer for IKEA U.S. "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. 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."

IKEA currently has 51 stores in the U.S. and two "Plan & Order Points," but the company says it wants to expand its footprint to bring IKEA closer to customers, both physically and digitally.

"More than ever before, we want to increase the density of our presence in the U.S., ramp up our fulfillment capacities and make our offer even more relevant to local customers' needs and dreams," Öncü said.

IKEA is the world's largest furniture retailer — with stores in 31 countries — and sells ready-to-assemble furniture, home accessories, and kitchen appliances.

The company is known for its modern and minimalist designs, affordable prices, and the convenience of its self-service approach to shopping.

Öncü told the Financial Times that he expects the U.S. to surpass Germany as IKEA's largest sales market over the next few years.

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