Marketing
Ikea planning $2.2B U.S. expansion
April 24, 2023
Ingka Group, which owns Ikea, expects to spend $2.2 billion for a U.S. expansion effort.
The news comes as a big U.S. retailer, Bed Bath & Beyond, is filing for bankruptcy and consumer retail spend is dipping.
The expansion will take place over the next three years, according to a Reuters report, and will include eight large new stores and nine smaller retail locations as well as upgrades at current stores.
The U.S. is the company's second big market after Germany.
"It is in all the states across the U.S. where we see opportunities, but I would say in particular the South, where we see big demand that we have not so far been able to respond to," Tolga Öncü, head of IKEA Retail at Ingka Group, told the news outlet.
The expansion will grow the retailer's U.S. presence by about 30% as it currently operates about 50 stores.
