Ikea plans $2.2bn US investment in next three years

Ikea plans $2.2bn US investment in next three years

Ingka Group, the largest Ikea retailer, has announced an investment of more than €2 billion ($2.2bn) in its omnichannel growth strategy in the United States over the next three years.

Swedish home furnishings retailer will make its biggest investment in almost four decades of operating in the US.

“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,” said Tolga Öncü, Head of IKEA Retail, Ingka Group.

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,” said Javier Quiñones, CEO & Chief Sustainability Officer, Ikea US.

”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,” said the company in a press release.

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