IKEA announces $2.2B US investment, 17 new stores
FILE - IKEA store and logo in South Edmonton Common on May 20, 2022, in Edmonton, Alberta, Canada. (Photo by Artur Widak/NurPhoto via Getty Images)
Swedish furniture giant IKEA is making a major push to expand its footprint in the U.S.
Ingka Group, the largest IKEA store owner that represents roughly 90% of the brand's retail sales, announced Thursday it plans to invest $2.2 billion over the next three years in the U.S., marking its largest investment in the country to date.
The company said it plans to upgrade current locations in the U.S. as well as open 17 new IKEA stores in the first phase of its plan, with eight of its big-box retail locations and nine "plan and order points," which are smaller stores where customers can get advice and place furniture orders.
FILE - Carts sit stacked in an Ikea store in Brooklyn on April 20, 2023, in New York City. (Photo by Spencer Platt/Getty Images)
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Tolga Öncü, head of IKEA Retail at Ingka Group, said the specific locations for the new U.S. stores are still being determined but hinted the company has its eye on the South.
"It is in all the states across the U.S. where we see opportunities, but I would say in particular the South, where we see big demand that we have not so far been able to respond to," Öncü said.
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"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," Öncü said 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," he wrote.
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In addition to the expansion announced Thursday, Ingka pointed out IKEA stores that are already slated to open this summer in San Francisco and in Arlington, Virginia.