Ikea to invest over $2.2B in new U.S. stores, pickup sites during next three years

Ikea is making its largest investment in the U.S. since it opened here 40 years ago.

The Swedish home and furniture giant will invest more than $2.2 billion during the next three years in its omnichannel growth strategy. In the first phase of the initiative, Ikea plans to open eight new stores and 900 pick-up locations where customers can collect purchases.

In addition, it will open nine “Plan & Order points,” including a location in San Francisco and at Pentagon Centre shopping center in Arlington, Va., both of which are set to debut this summer. The Plan & Order sites, an extension of Ikea’s Planning Studio format, provide personalized assistance on home projects. Customers can order goods to be delivered to their home or picked up at one of Ikea’s collection points. No items are stocked in the store for take home.

Ikea said the new investment will bring it closer to U.S. customers both physically and digitally— making it easier and more convenient to shop.

"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. "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."

In the last three years, Ikea U.S. been expanding its fulfillment capabilities to adapt to the evolving needs of consumers. The company said the new investment will expand that effort by continuing to modernize existing stores while also increasing handling capacity for deliveries directly from the store.

In addition, Ikea will continue to build more effective replenishment and fulfillment capabilities while transforming last mile deliveries to ensure faster, more sustainable and more affordable deliveries.

The retailer said it also is continuing its commitment to the planet. As it works toward its goal to be climate positive by 2030, Ikea will increase solar and geothermal technology in locations whenever possible, transition to EV trucks to support fulfillment and delivery and reduce waste.

Resale also figures into Ikea’s sustainability efforts. It recently expanded its efforts with the launch of “As-is online,” a service that allows Ikea loyalty program members to browse and reserve used products online to pick up and purchase in-store.

"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, 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 many people, which is especially important given the increasing costs of living."

With Ikea retail operations in 31 markets, Ingka Group is the largest Ikea retailer and represents about 90% of Ikea retail sales. It has three business areas: Ikea Retail, Ingka Investments and Ingka Centres.