IKEA is planning to majorly expand its footprint in the United States with a record $2.2 billion investment over the next three years.
The home furnishings retailer announced the investment on Thursday, saying it represents the company's largest investment in almost four decades of operating in the U.S.
"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," Tolga Öncü, Head of IKEA Retail, Ingka Group, said 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 range even more relevant to local customers' needs and dreams."
In the first phase, IKEA anticipates opening eight new full-sized stores and nine smaller "plan and order point" locations, creating over 2,000 jobs. Additionally, the company has announced new locations in San Francisco, California and Arlington, Virginia, set to open this summer.
"We know U.S. customers have a strong desire for more ways to shop and experience IKEA, and this growth plan will allow us to meet that need. We are committed to continuing to grow in this market with our thousands of co-workers and millions of customers who look to IKEA for home furnishing inspiration and solutions at an affordable price," said Javier Quiñones, CEO and Chief Sustainability Officer, IKEA US. "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."
The retailer said the investment will further modernize existing stores so that they have a dual role – "to offer inspiration and home furnishing expertise while also increasing their handling capacity for parcel deliveries directly from the store."
The investment also allows the company to explore new opportunities in clean energy, circularity and affordable housing around the country.
"As IKEA works toward its goal to be climate positive by 2030, it will increase solar and geothermal technology in locations whenever possible, transition to EV trucks to support fulfillment and delivery, and reduce waste," the company said.
The Sweden-base retailer, which opened its first U.S. store in 1985 near Philadelphia, operates 51 store locations across the country.
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