Ingka, the company that runs the IKEA department store chain, has unveiled its plan to expand in the United States over the next three years. The investment amounts to €2 billion ($2.2 billion) and is the largest single-country investment to date. It wants to take advantage of a situation in which other retailers are closing branches to attract more American consumers. Ingka Group had U.S. sales of 5.5 billion euros ($6.03 billion) in fiscal 2022
The Swedish company has been in the U.S. market since 1985 and is currently seeking a higher market share by offering affordable furniture. It has plans to open nine large and eight small stores and upgrade existing stores. According to Tolga Öncü, head of the retail department, the highest demand is in the southern states and the expansion of the stores will provide them with 2,000 jobs, which is good news for residents after the layoffs by Wayfair and Walmart. IKEA will thus have a lot of potential in workforce and also cheaper space for stores and warehouses.
Going electric
Another recent investment from IKEA of £4.5 million ($5.6 million) will go towards building a nationwide electric vehicle charging infrastructure in the UK. The charging stations will be part of IKEA stores across the country. There will be 193 in total, 53 of which will be fast chargers. The company wants to achieve zero-emission delivery to customers and become more affordable and sustainable by 2025. Implementing these chargers into its distribution system will enable it to use more electric vehicles, bringing it closer to its goal of becoming a climate-positive company by 2023.
