# IKEA plans new U.S. stores in $2.2 billion push to challenge Walmart and Wayfair Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: IKEA to Invest $2.2 Billion in U.S. Expansion to Challenge Meta Description: Discover how IKEA is investing billions to challenge Walmart and Wayfair in the United States, creating new stores and jobs to reach more customers. URL: https://financedigest.com/ikea-plans-new-u-s-stores-in-2-2-billion-push-to-challenge-walmart-and-wayfairhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-20t110144z1lynxmpej3j0firtroptp4ikea-france-1736814115630-compressed.jpg) # IKEA plans new U.S. stores in $2.2 billion push to challenge Walmart and Wayfair By Helen Reid LONDON (Reuters) – IKEA stores owner Ingka Group will spend 2 billion euros ($2.2 billion) expanding in the United States over the next three years, its biggest investment in a single country, in a bet to win American customers as other big-box retailers close stores. Sweden’s IKEA, which opened its first U.S. store in 1985, near Philadelphia, is seeking to win [market share](https://www.financedigest.com/top-5-players-to-account-for-45-of-global-consumer-appliance-coatings-market-share-through-2031.html "Top 5 Players to Account for 45% of Global Consumer Appliance Coatings Market Share Through 2031") in the U.S. as cash-strapped [consumers look for more affordable products](https://www.financedigest.com/bagasse-tableware-products-market-will-top-us-3-75-bn-by-2031-as-consumers-proclivity-for-eco-friendly-and-single-use-product-purchase-grows.html "Bagasse Tableware Products Market will top US$ 3.75 Bn by 2031 as Consumers’ Proclivity for Eco-Friendly and Single-Use Product Purchase Grows"). “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](https://www.financedigest.com/inpost-sees-stronger-2022-but-warns-of-slowing-demand.html "InPost sees stronger 2022 but warns of slowing demand") that we have not so far been able to respond to,” said Tolga Öncü, head of IKEA Retail at Ingka Group. Ingka [plans to open eight new big](https://www.financedigest.com/uk-leadership-favourite-truss-u-turns-on-pay-plan-in-first-big-misstep.html "UK leadership favourite Truss U-turns on pay plan in first big misstep") IKEA stores and nine smaller stores as well as upgrading existing stores in the U.S., which is IKEA’s second-biggest market by [sales after Germany](https://www.financedigest.com/germany-to-lower-sales-tax-on-gas-to-7-in-bid-to-relieve-consumers.html "Germany to lower sales tax on gas to 7% in bid to relieve consumers"), the company said on Thursday. Öncü said specific [locations for the stores](https://www.financedigest.com/five-reasons-you-need-a-store-locator-and-how-it-can-improve-sales.html "Five reasons you need a store locator and how it can improve sales") had not yet been decided. The new stores, including nine [“plan and order](https://www.financedigest.com/uk-orders-housebuilders-to-come-up-with-5-billion-plan-to-remove-cladding.html "UK orders housebuilders to come up with billion plan to remove cladding") points”, smaller stores where customers can get advice and order furniture for delivery, are in addition to already planned IKEA openings in downtown San Francisco and in Arlington, Virginia. As consumers spend less, big-box retailers Walmart and online furniture retailer Wayfair are cutting jobs and shutting stores, [creating an opportunity](https://www.financedigest.com/grain-and-cereal-crop-market-novel-technological-solutions-will-create-lucrative-growth-opportunities.html "Grain And Cereal Crop Market : Novel Technological Solutions Will Create Lucrative Growth Opportunities") for IKEA to pick up cheaper store and warehouse space. The IKEA expansion will [create 2,000 jobs](https://www.financedigest.com/success-story-synapse-to-accelerate-growth-and-create-jobs.html "Success Story Synapse to Accelerate Growth and Create Jobs"), Ingka said. There are locations available that have not been available before, there are opportunities for us to speed up [investments in acquiring land and existing locations to bring](https://www.financedigest.com/investment-inspection-trips-bring-liverpool-to-life-for-asian-property-investors.html "Investment Inspection Trips bring Liverpool to life for Asian property investors") IKEA closer to the many people,” Öncü said. The planned [stores would increase the number of IKEA](https://www.financedigest.com/ikea-stores-owner-ingka-starts-on-first-new-zealand-store.html "IKEA stores owner Ingka starts on first New Zealand store") locations in the U.S. by around a third, from 51 stores and two “plan and order points”. Ingka Group had revenues of 5.5 [billion euros](https://www.financedigest.com/stellantis-makes-30-billion-euro-wager-on-electric-vehicle-market.html "Stellantis makes 30 billion euro wager on electric vehicle market") ($6.03 billion) in the U.S. in its 2022 [financial year](https://www.financedigest.com/what-financial-institutions-will-be-like-in-10-years.html "What Financial Institutions Will Be Like In 10 Years"). ($1 = 0.9130 euros) ($1 = 0.9126 euros) [(Reporting by Helen Reid in London](https://www.financedigest.com/london-reclaims-place-as-preeminent-global-financial-centre-for-the-first-time-since-2013-according-to-global-regulatory-outlook-report-from-duff-phelps.html "London reclaims place as preeminent global financial centre for the first time since 2013, according to Global Regulatory Outlook report from Duff & Phelps") and Marie Mannes in Stockholm; Editing by Sharon Singleton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---