Ikea to Invest $2.2B in Plan to Boost US Business
Ikea will invest more than $2.2 billion over the next three years into its omnichannel growth strategy in the U.S., marking the Swedish home and furniture company’s biggest investment push since it opened in the U.S. nearly 40 years ago. The retailer’s $2.2 billion investment will be used for a variety of efforts, including expanding new store models and pickup locations for online orders, and is aimed at improving accessibility while keeping products affordable, Javi Quiñones, CEO and chief sustainability officer at Ikea U.S., told CNBC.
As part of the investment, Ikea will open nine “Plan & Order points,” an extension of the company’s existing “planning studios,” where customers can get personalized help on bigger home projects. In addition, Ikea is adding 900 new pickup locations to its offering, allowing customers to retrieve ordered goods from more convenient locations, including company stores and distribution centers.
Total Retail's Take: Ikea is trying to differentiate itself with improved omnichannel shopping experiences for its customers. Leveraging its physical store network together with its distribution centers, Ikea wants to make it easier for consumers to shop with the company, giving them more options for purchasing and receiving items. The strategy illustrates how retailers, including Ikea, are thinking about evolving their brick-and-mortar stores to keep them relevant interaction points in a multichannel shopping journey that frequently begins online.
“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," said Quiñones in a company press release. “We're 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. 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.”
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.