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Dive Brief:
Ikea U.S. will open 10 stores across the country in 2026, according to a Tuesday press release.
The new brick-and-mortar locations will include the retailer’s first city-center store in Los Angeles and its first location in Oklahoma.
The home furniture retailer had announced earlier this month that it will close its Memphis, Tennessee, store, effective May 3, as part of a larger evaluation of its U.S. footprint.
Dive Insight:
Ikea is expanding its U.S. footprint while dealing with a challenging consumer environment for the home sector.
“FY25 was a year of meaningful connection and growth despite a challenging external environment,” Rob Olson, interim CEO of Ikea U.S., said in a statement. “Looking ahead to FY26, we will build on this momentum, focusing on continued investment in the U.S. to make Ikea more affordable, accessible and sustainable.”
Ikea U.S.’s fiscal 2025 sales dropped about 4.3% year over year compared to FY2024, ending the period with about $5.3 billion in total sales, according to its annual summary released Tuesday. The company also saw a slight decline in total visitors to its stores, but saw a 4% increase in online store visits.
For FY2026, the retailer said in its annual summary that it plans to “continue leveraging our $2.2 billion investment slated for omnichannel growth.”
Ikea has been focused on modernizing its presence in the U.S. and expanding its smaller format locations.
The retailer debuted a new shop-in-shop partnership with Best Buy in July, piloting kitchen and storage planning services inside select Best Buy stores.
Its updated strategy has included the opening of small-format locations in the U.S. The retailer also opened nine plan and order points, two Ikea-branded pickup points in California and two pop-up pickup spots in the Chicago area.
The home retailer also emphasized its expanded fulfillment efforts in its FY25 annual summary, noting that it increased efforts to use stores for online order fulfillment during the year.