IKEA invests in new US locations
IKEA plans $2.2 billion expansion in U.S. - New locations planned in southern states

Swedish furniture chain IKEA will invest around $2.2 billion in the U.S. market over the next three years. The Ingka Group, which operates the IKEA stores, is thus planning the largest investment in a single country in the company's history. The goal is to increase U.S. market share and offer customers there more affordable products, even during the crisis. In the U.S., IKEA plans to open a total of eight new large stores and nine smaller stores. In addition, existing IKEA locations are to be expanded. The focus is to be on the southern U.S., where demand is high and not yet met.
The opening of IKEA stores in San Francisco and Arlington was already planned, and now more stores are to follow. Ingka Group also plans to modernize its existing stores. In the future, the new "Plan and Order Points" will also serve as a contact point for customers to get advice and place an order for shipping. The expansion is expected to create around 2,000 new jobs in the process.
IKEA's expansion in the U.S. comes at a time when other retailers such as Walmart and Wayfair are struggling. Those have cut jobs and closed locations in the pandemic. IKEA now has the opportunity to find more affordable space for its stores. Ingka Group plans to increase the number of IKEA stores in the U.S. by a third, from 51 to 68 stores. At the same time, the U.S. is IKEA's second-largest market after Germany.
Tolga Öncü, head of IKEA Retail at Ingka Group, was positive about the plans, saying, "There are opportunities for us to accelerate investment in land acquisition and existing sites to bring IKEA closer to people." By investing in the U.S. market, IKEA aims to expand its market presence in the country and increase its competitiveness in the United States.
