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IKEA will open new store formats



The furniture giant continues implementing its strategy to surpass the classic "big blue boxes".
IKEA

Swedish Ingka Group, which runs IKEA's retail business, will focus on developing new formats in the United States. The furniture giant continues implementing its strategy to surpass the classic "big blue boxes".

It became known last week that IKEA will invest $2.2 billion to develop the U.S. market. A part of the funds will be used to strengthen its omnichannel strategy. Specifically, the company will open eight new stores, nine "Plan and Order" locations and 900 pickup locations, creating more than 2,000 new jobs.

By the end of 2022, IKEA had 460 stores under its management, including 360 large-format stores in 62 countries. The company said it considers customers' criticism of the inconvenient location of large stores on the outskirts or outside of large cities.

Ingka Group announced in 2022 that it will invest more than 3 billion euros to open new stores and modernize existing ones in the U.S., Canada and Western Europe. The new statement notes that $2.2 billion will be earmarked for expansion in the U.S. separate from the aforementioned amount.

IKEA typically opens giant furniture centers ranging from 200,000 to 500,000 square feet. As part of the new strategy, the company will also develop 20,000- to 200,000-square-foot stores featuring more convenient locations in urban centers. One of such store will open soon in San Francisco.

In addition, IKEA will open delivery-oriented "Plan and Order" stores in the U.S. - outlets in the 1,100- to 8,600-square-foot format. The first will open in Arlington, Virginia, a suburb of Washington, D.C., this summer.

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