Ikea announces $2.2bn expansion in US

Furniture company to open eight new stores as part of major investment

An Ikea store in Brooklyn, New York. AFP
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Swedish furniture company Ikea has announced plans to spend $2.2 billion as part of a major expansion in the US over the next three years.

The retailer plans to open eight new large stores and nine smaller stores. It is Ikea's largest investment in the US in four decades, and the largest investment it has made in any single country.

Ikea said the expansion would create more than 2,000 jobs in the US.

The US is Ikea's second-largest market in the world, with 14 per cent of the store's sale shares, only second to Germany, data from Statista showed.

“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,” said Tolga Oncu, head of Ikea retail at Ingka Group.

“More than ever before, we want to increase the density of our presence in the US, ramp up our fulfilment capacities and make our offer even more relevant to local customers’ needs and dreams.”

The location of the eight large stores have not yet been announced.

The nine smaller stores will constitute “plan and order points”, where customers can book appointments for advice and order furniture.

Ikea currently has 50 stores in the US.

Updated: April 21, 2023, 6:05 PM