Get ready for a lot more Swedish meatballs. Ikea has announced plans for a $2.2 billion investment in the U.S. market, which will see 17 new locations opened across the country over the next three years.
The investment will result in over 2,000 new jobs, the company says.
Eight new stores and nine “Plan & Order” locations, which let customers plan the layout of their room with the help of Ikea consultants, then place orders. (There are, at present, just two “Plan & Order” locations and 51 stores in the U.S.)
Ikea also said it plans to open 900 new Pick-up locations, where customers can pick up merchandise if they don’t live near a store. And existing stores will be modernized
Ikea did not announce where the new locations would go. The Wall Street Journal said the focus would be on Southern states, but Ikea downplayed that in a statement to Fortune, saying "We are evaluating the needs of our customers to determine where the demand is across the U.S., including but not limited to the south. ... We want to make sure that our new locations and formats complement our existing channels in a seamless way and give customers many more options to engage with IKEA. We will be sharing more details on our expansion plans at a later stage."
“The U.S. 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 Öncü, head of Ikea Retail, Ingka Group, in a statement. “More than ever before, we want to increase the density of our presence in the U.S., ramp up our fulfillment capacities and make our offer even more relevant to local customers’ needs and dreams.”
The expansion in the U.S. comes on the heels of a three-year European expansion by the chain. Ikea representatives, though, say this is the biggest investment Ikea has ever made in a single country.
“Our priority is to become more accessible, while staying as affordable as possible for the many people, which is especially important given the increasing costs of living,” said Javier Quiñones, CEO & Chief Sustainability Officer, Ikea U.S.
