IKEA Plans New US Locations as Part of a $2.2B Campaign to Take on Walmart and Wayfair

Key Takeaways:

  • IKEA aims to invest 2 billion euros over the next three years to increase its footprint in the US to compete with retail behemoths Walmart and Wayfair.
  • The US accounts for IKEA’s second-largest market; the company intends to grow in the US even more.
  • IKEA is investing in sustainable resources like bamboo and recycled plastics and renewable energy sources like wind and solar electricity to meet its sustainability objectives.
Grancia, Switzerland - 18th March 2021 : IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) sign hanging on the store building in Lugano. Ikea is the world's largest retailer of ready-to-assemble furniture
IKEA Plans New US Locations as Part of a $2.2 Billion Campaign to Take on Walmart and Wayfair

WISCONSIN (CoinChapter.com) — Owner of IKEA stores, Ingka Group, aims to invest 2 billion euros ($2.2 billion) over the next three years to increase its footprint in the United States to compete with retail behemoths Walmart and Wayfair. 

This represents the business’s largest investment in a single nation and demonstrates its dedication to luring American customers as other big-box retailers close locations.

Plan for IKEA’s Expansion

In 1985, IKEA of Sweden opened its first store in the United States close to Philadelphia, and it has since grown to be well-known. 

As Americans struggle to make ends meet, the furniture industry giant vies for market share here. IKEA’s top market is led by Germany with 14.4% of sales, France with 8.3%, and the United Kingdom with 6.6%. 

As the second-largest market, accounting for 14% of IKEA’s overall sales, the company intends to grow in the US even more.

IKEA’s parent business, Ingka Group, declared its plan to increase its presence in the US on April 20, 2021. The strategy calls for adding 17 new stores, remodeling current ones, and expanding the company’s online presence. 

By 2025, the corporation hopes to significantly increase its market share in the US, which would necessitate rapid sales growth.

Competition from IKEA

Walmart and Wayfair, two of the biggest retailers, are fierce rivals of IKEA. The biggest retailer in the world, Walmart, is heavily represented in the American market. Sales of the company’s US online stores increased by 79% in 2020 as more people started shopping online because of the pandemic. 

Online retailer Wayfair has experienced substantial growth in recent years. Due to consumers spending more time at home and on furniture and home decor, the company’s net income rose by 55% in 2020.

To compete with these retail behemoths, IKEA intends to provide a cohesive shopping experience across all in-store, online, and mobile channels.

The company has already made significant investments in its online store; IKEA intends to broaden its click-and-collect options and provide same-day delivery in a few markets.

Sustainability Initiatives at IKEA

IKEA is dedicated to sustainability and extending its footprint in the US. By 2030, the company aims to become a climate-positive enterprise. 

This entails employing sustainable resources and renewable energy and cutting back on waste and emissions. IKEA also intends to accept, resell, or recycle used furniture to reduce waste further.

IKEA is investing in sustainable resources like bamboo and recycled plastics and renewable energy sources like wind and solar electricity to meet its sustainability objectives. 

In some locations, the business has also started a buy-back program that enables customers to return used furniture in exchange for shop credit.

It will be interesting to see how IKEA adjusts to shifting consumer preferences and behaviors as it grows its market share in the US and maintains its innovative edge in the furniture and home products industries.

Leave a Comment

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com WestcoastNFT.com