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Swedish furniture giant IKEA is making a major push to expand its footprint in the U.S.
Ingka Group, the largest IKEA store owner that represents roughly 90% of the brand's retail sales, announced Thursday it plans to invest $2.2 billion over the next three years in the U.S., marking its largest investment in the country to date.
Major IKEA retailer Ingka Group announced a $2.2 billion investment to expand its U.S. footprint. (Reuters / Stephane Mahe / File / Reuters Photos)
The company said it plans to upgrade current locations in the U.S. as well as open 17 new IKEA stores in the first phase of its plan, with eight of its big-box retail locations and nine "plan and order points," which are smaller stores where customers can get advice and place furniture orders.
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Tolga Öncü, head of IKEA Retail at Ingka Group, said the specific locations for the new U.S. stores are still being determined but hinted the company has its eye on the South.
Customers shop following the opening of an IKEA store in Nice, France, May 11, 2022. Another 17 IKEA stores will be coming to the U.S. as part of a major expansion. (Reuters / Eric Gaillard / File / Reuters Photos)
"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," Öncü said.
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"The US is one of our most important markets, and we see endless opportunities to grow there and get closer to the many Americans with affordable products and services," Öncü said in a statement.
IKEA's largest store owner and operator is planning to build another 17 stores in the U.S. over the next three years. (iStock / iStock)
"More than ever before, we want to increase the density of our presence in the US, ramp up our fulfillment capacities, and make our range even more relevant to local customers’ needs and dreams," he wrote.
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In addition to the expansion announced Thursday, Ingka pointed out IKEA stores that are already slated to open this summer in San Francisco and in Arlington, Virginia.
Reuters contributed to this report.