An IKEA store stands in Brooklyn, New York City on April 20, 2023. IKEA store owner Ingka Group has announced a 2 billion euro ($2.2 billion) expansion in the United States over the next three years, its biggest investment in a single country.
Spencer Pratt | Getty Images
IKEA will invest more than $2.2 billion in its omni-channel growth strategy in the United States over the next three years, the largest investment the Swedish home and furniture company has made since it opened in the United States nearly 40 years ago.
Omni-channel retail experiences, where online and in-store shopping experiences complement each other, have become increasingly popular in light of the online shopping boom sparked by the pandemic.
Its roots predate the pandemic: In the US, the trend is being amazonThe acquisition of Whole Foods in 2017 incorporated a number of technological advancements into the in-person shopping experience.Soon, large retailers such as walmart and Target second fit.
IKEA, known for its carefully curated showrooms and model apartments in its flagship stores, has already begun moving toward this strategy.In recent years, companies have often roll out renew to its home augmented reality preview tool. As a home and furniture company, combining in-store and online shopping has added appeal because customers need to envision how products will fit into their existing homes.
People shop at an IKEA store on April 20, 2023 in Brooklyn, New York City. IKEA store owner Ingka Group has announced a 2 billion euro ($2.2 billion) expansion in the United States over the next three years, its biggest investment in a single country.
Spencer Pratt | Getty Images
IKEA USA CEO and Chief Sustainability Officer Javi Quiñones told CNBC that the retailer’s $2.2 billion investment will be used in various efforts, including expanding new store formats and pickup locations, aimed at improving accessibility while maintaining The product is reasonably priced.
“It also shows how important the US market is to IKEA,” Quiñones said. “We started here in the US about 40 years ago, and this is the largest (investment) we’ve ever made.”
An IKEA spokesman said it was unclear how the billions of dollars in investment would go toward any particular omnichannel effort at IKEA.
As part of the investment, the company will open nine “planning and order points,” which are The company’s existing “planning studio”, Clients can get personalized help with larger home projects, such as a kitchen or bathroom remodel.
Plan & Order points will function in the same way that the company’s planning studio currently works: after consulting with a planner at IKEA’s studio, customers will be able to order items to be shipped directly to their home. Planning Studio doesn’t actually have items in stock for purchase.
The chain opened its first planning studio on New York’s Upper East Side in 2019, calling it its first “downtown” location, and has since opened several other locations, but it closing its New York store In January 2022, said it was seeking relocation.
These alternative in-person shopping options are meant to complement, not replace, Ikea’s flagship store, Quiñones said.
He added that the company is currently “exploring every option” when it comes to ideal locations for these different store formats. According to Quiñones, the first Plan & Order location slated to open this year will be in Arlington, Virginia, with more in the pipeline.
Along the way, some may open in places where there are already nearby IKEA stores, while others may open in cities without any IKEA stores. “The whole point here is to bring more Americans closer,” Quiñones said.
As part of this effort, IKEA’s new investment will also add eight new stores to its existing lineup of U.S. stores. To date, there are 51 stores in the United States. Combined with programs and order credits, the addition of the eight stores will bring 2,000 new jobs to the company, IKEA said.
Horse-drawn carts are stacked at an IKEA store in Brooklyn, New York City, April 20, 2023. IKEA store owner Ingka Group has announced a 2 billion euro ($2.2 billion) expansion in the United States over the next three years, its biggest investment in a single country.
Spencer Pratt | Getty Images
IKEA has also added 900 new pickup points, allowing customers to pick up their orders from more convenient locations. Like omnichannel retailing more broadly, order pickup options have flourished across a variety of retailers throughout the pandemic.
Most of IKEA’s pickup locations will be associated with IKEA stores, and some stores will have multiple pickup locations, Quiñones said. In some cases, orders will be delivered from distribution centers if there are no IKEA stores near the pickup location, he added.
While IKEA is investing in expanding its pick-up options, Quiñones stressed that the company remains committed to expanding its larger locations, saying the “full IKEA experience” happens when a customer walks into an IKEA store. “Pickup points will be there to provide more convenience for customers,” he said.
IKEA’s investment will also fund an ongoing effort to modernize existing stores, in part through energy efficiency improvements, solar panel installations and electric fleets, Quiñones said.
These efforts are crucial to the company’s climate goals: By 2025, IKEA plans to deliver only reachable by electric cara key part of it A bigger plan to reduce greenhouse gas emissions.
