IKEA makes biggest U.S. investment, plans 17 new stores
STORY: In a huge bet to draw more U.S. consumers, Swedish furniture giant IKEA will spend $2.2 billion dollars to expand nationwide – marking its biggest investment ever in a single country.
Parent company Ingka Group on Thursday said it will open 17 new stores in the U.S. over the next three years and upgrade existing locations.
The strategy: to win over cash-strapped U.S. consumers – still struggling with inflationary prices – as they seek more affordable products.
And in the process – steal market share from big box rivals and online retailers amid a slowing U.S. economy.
As consumers spend less, Walmart and online furniture retailer Wayfair are cutting jobs and shutting stores, creating an opportunity for IKEA to pick up cheaper store and warehouse space.
The retailer - which opened its first U.S. store in 1985, near Philadelphia – said specific locations had not yet been decided, but that it sees untapped opportunities in the South. The company had previously announced new store openings in San Francisco and Arlington, Virginia.
The U.S. is IKEA’s second-biggest market by sales after Germany, the company said, adding that its U.S. expansion will create 2,000 jobs.
