IKEA Announces Biggest Ever US Investment

• IKEA retail announces biggest ever investment in US, commits more than EUR 2 billion into expansion and fulfilment 

Ingka Group, the largest IKEA retailer, today announces an investment of more than EUR 2 billion (USD 2.2 billion) in omnichannel growth in the United States over the next three years. Marking its largest investment in almost four decades of operating in the US, the company is building on its vision to create a better everyday life for the many people by opening new stores and locations to meet customers, strengthening its fulfillment network to secure better delivery options, and providing a product offer 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. 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." – Tolga Öncü, Head of IKEA Retail, Ingka Group

The investment will bring IKEA closer to US customers both physically and digitally— making it easier and more convenient to shop. 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.

"We know US customers have a strong desire for more ways to shop and experience IKEA, and this growth plan will allow us to meet that need. 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." – Javier Quiñones, CEO & Chief Sustainability Officer, IKEA US

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 US 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 fulfilment 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.

Source : IKEA

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