IKEA’s $2 Billion Bet on America

The owner and operator of IKEA is spending over $2 billion to open 17 new US location over the next three years. This investment will also boost its fulfillment network which will improve its delivery services. Of the 17 locations, eight will be new stores, mostly in southern states. Nine of the new locations will be something called a “Plan and order point” where customers can plan the layout of their rooms with IKEA consultants and then place orders for the IKEA products.
The company is trying to increase profits given the high inflationary environment and decreasing consumer confidence in the economy. Other companies like Lego and Zara have been looking to the US to help prop up their sales and profits given the deteriorating economic situation abroad.
IKEA has been doing well this year due in part to the easing of supply chain blockages.
IKEA is a private company. There are currently 51 IKEA stores. The largest market for IKEA is Germany, followed by America.
On a personal note, I love IKEA. I’m a frugal person that makes every dollar count. I’ve furnished almost the entirety of my house in IKEA including the mattresses, curtains, rugs, and wall décor. I also enjoy eating lunch at the cafeteria.

Works Cited:
https://www.wsj.com/articles/ikea-to-open-17-new-u-s-stores-in-expansion-drive-cdf946ac?mod=hp_lead_pos4