Ikea, the world's largest furniture retailer, is planning to invest a whopping €2 billion ($2.19 billion) to expand its presence in the United States. This will be the biggest-ever investment by the retailer in a single country. The Dutch holding company of Ikea Retail, Ingka Group, announced on Thursday that it is aiming to open eight large stores and nine smaller "plan and order points" in America over the next three years. This move is expected to create around 2,000 jobs.
Ikea's plan and order points are designed for customers who require assistance in designing their homes and placing orders. The company is yet to decide on the exact locations for the new stores, although it intends to build its presence on the east and west coasts and invest more in the southern region of the country.
According to Tolga Öncü, head of Ikea Retail, there are "endless opportunities to grow" in the United States. He further added, "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."
Ikea already has 51 stores and two plan and order points in America. The company is also set to open new locations in San Francisco, California, and Arlington, Virginia, over the summer. Ingka Group is planning to use part of its massive investment to modernize its existing Ikea stores in the US, making them capable of sending out more parcels.
Founded in Sweden in 1943, Ikea has a presence in 31 countries. Its stores are operated as franchises, with Ingka Group being the biggest franchisee, representing about 90% of Ikea's sales globally. Öncü expects the United States to overtake Germany as Ikea's biggest market in terms of sales in the next few years. Ingka Group reported sales of €5.5 billion ($6 billion) in the United States in the last financial year, which ended in August 2022. It took €5.7 billion ($6.2 billion) in sales in Germany over the same period.