Dive Brief:
- Continuing its store expansion strategy, Ikea plans to open four more of its “Plan & order point with Pick-up” locations in the U.S. this year, according to a Wednesday announcement. The locations enable shoppers to pick up online purchases, as well as talk to sales associates and order products there.
- In 2024, the company is opening stores in Austin, Texas; the Atlanta metro area; and two in the Los Angeles region. The Austin location will open this summer, according to the announcement.
- The openings are in addition to at least three plan-and-order stores with pick-up set to open early this year in Annapolis and Gaithersburg, Maryland; and Katy, Texas.
Dive Insight:
Ikea’s store openings are part of the company’s efforts to extend its reach through alternative store formats. Last April, Ikea unveiled its plan to pour $2.2 billion into opening more stores and improving its fulfillment network over the next three years.
“As we look back at the past year, I’m proud of the progress we’ve made in reducing our environmental impact and keeping affordability and accessibility at the forefront for all our customers,” Javier Quiñones, CEO and chief sustainability officer at Ikea U.S., said in a statement. “Looking ahead, we are excited about our plans for new locations and services bringing the joy of Ikea to more hearts and homes.”
Ikea has also made changes to its customer loyalty incentives recently. In November, the retailer said it was discontinuing the 5% discount on in-store decor and furniture for Ikea Family members. However, members continue to receive access to delivery discounts, a free hot drink when visiting the store and exclusive offers.
The following month, the retailer reduced prices on hundreds of products and announced bonuses for its employees. It did so to celebrate $6.3 billion in total sales in fiscal year 2023, up 6.6% from the year prior.
