Swedish furniture giant Ikea will open eight new small-format stores across the US, expected to open in spring 2025.
The stores are set to launch in Cherry Hill, Pennsylvania; Hunt Valley, Maryland; Beaverton, Oregon; Scottsdale, Arizona; and three locations in California: Thousand Oaks, Ontario, and Colma with a pickup point in Santa Monica.
These smaller stores allow customers to meet with Ikea staff to order and design products that will be delivered or scheduled for collection at the designated pickup points.
Javier Quiñones, CEO and chief sustainability officer at Ikea, said: “Our strategy continues to prioritize our customer’s needs, and in FY24, we continued to make everyday living more accessible, especially during a time when we know economic challenges are leading to a decrease in disposable income for many Americans.”
“As we gear up for the 40th anniversary of Ikea US in 2025, we’re committed to reaching even more customers where they are.”
The development is part of the company’s $2.2 billion expansion strategy with a focus on an omnichannel growth strategy.
Rob Olson, chief operating officer at Ikea US, added: “Ikea is expanding its presence in the US, making our stores more accessible and convenient for customers. Our smaller-format stores are essential to this growth.
“Looking forward, we see numerous opportunities to bring Ikea closer to our customers through new locations and an enhanced digital experience, all while maintaining the affordable prices our customers expect.”
Ikea has established a strong presence in the US since opening its first store in 1985, with its market share increasing by 13.6% over the past five years.
However, the company saw a decline in revenue from $6.3 billion in 2023 to $5.5 billion in 2024.
Additional highlights from the fiscal year 2024 were the introduction of a Spanish website for increased accessibility, a 5.6% rise in ecommerce sales, and introduced financial flexibility with Afterpay.
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