Leiden, Netherlands — Ingka Group has announced plans to invest $2.2 billion over the course of the next three years on new IKEA retail locations and omnichannel growth across the United States.
The Leiden, Netherlands-based company is the largest owner of IKEA stores globally, representing more than 90 percent of IKEA retail sales with more than 370 stores and 100 home décor planning studios open across 31 countries.
The initial phase of investment will include opening eight stores in IKEA’s traditional format and nine “Plan and Order” points, which are smaller stores dedicated to kitchen, bedroom and living room planning. Plan and Order is an extension of IKEA’s existing planning studio business and is a relatively new endeavor for the company, with only two locations currently open in England.
Ingka Group’s new stores will be primarily located in the Southern United States, a region where IKEA currently has a smaller concentration of locations, according to reports by The Wall Street Journal. These stores will create over 2,000 jobs upon completion.
IKEA US, the American subsidiary of the retailer, has also announced new locations in San Francisco and Arlington, Va., that are set to open this summer.
The $2.2 billion investment will also include the modernization of Ingka Group’s existing IKEA stores in the United States, details of which were not disclosed, and the development of more effective replenishment, fulfillment and last-mile delivery services to ensure faster, more affordable delivery nationally. This investment marks Ingka Group’s largest in the United States in almost four decades.
“The United States is one of our most important markets, and we see endless opportunities to grow there,” says Tolga Öncü, head of IKEA retail with Ingka Group. “More than ever before, we want to increase the density of our presence in the United States and ramp up our fulfillment capacities.”
Alongside Ingka Group’s IKEA retail banner, the company includes Ingka Centres and Ingka Investments, both of which center on developing and acquiring IKEA-anchored commercial real estate assets globally.