While Ikea's largest market is currently in Germany, the Swedish furniture giant has been taking big steps to expand its American presence even further than the 44.6 billion euros ($48.97 billion) and 14% market share it gained from the US in 2022.
Earlier in April, Ikea announced that it would spend two billion euros ($2.2 billion) to open eight new warehouse-style stores, nine smaller locations and 900 online pick-up points in different parts of the US.
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All of this comes on top of the two new locations opening in San Francisco and Arlington, Va. in the summer of 2023 — the goal is to make Ikea services available even in pockets of the country that are within a few hours' drive of the larger warehouse store.
Ikea
Ikea Launches New Network Program For Small Businesses
In further expansion of the services offered to U.S. clients, Ikea announced that it is launching a loyalty program aimed at small business owners. As of April 26, the Ikea Business Network allows those who run a small company to sign up for a free account and track one's orders and plan future purchases online, connect with interior designers specializing in designing office space as well as get discounted delivery and 5% off in-store purchases.
Other features include the ability to offer one's employees certain benefits from various dining, automobile, fitness and insurance companies that partner with Ikea and a free hot tea or coffee every time they come into an Ikea store.
"At IKEA, our ambition is to offer our customers quality products at an affordable price, and we're excited to launch this unique program to specifically support businesses," Nicole King, Ikea's manager of engagement & loyalty, said in a statement. "The IKEA Business Network goes beyond product savings and gives access to inspiring design solutions, a range of employee benefits and useful trainings that we hope will serve as a resource for small businesses and enable them to be successful."
The new loyalty program comes a few months after Home Depot (HD) significantly expanded the Pro Xtra Loyalty program it launched in 2012.
But while this program was always tailored toward the 10% of customers who work in construction professionally, Ikea hopes to hit a much wider customer base of buyers who run any type of small business in a wide range of industries.
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"Dive into our series of online training, where we share what we know about business basics, taking care of your team, and solutions for every space," the furniture company writes of the new loyalty program on its website.
Ikea's decision to pour significant funds into the U.S. market comes at a tricky time for the furniture industry.
As inflation and a looming recession force some to reconsider new purchases, online furniture company Wayfair cut 10% of its workforce last January while Ikea also recently eliminated 7,500 largely corporate positions.
While Ikea has the edge on rock-bottom furniture prices, it has definitely been feeling pressure to win over customers while also cutting costs. It is currently in the process of redesigning popular items like the Billy bookcase and Nammaro garden chair to have less expensive materials and take up fewer packaging and shipping space.
