The company plans to evaluate opportunities within 40 major cities across Europe, Russia, North America, Asia and Oceania with the expansion. The goal is to introduce these vibrant destinations to their portfolio.
IKEA currently has over 420 stores and is best known for their warehouse locations in suburban areas. Although they’re venturing into a different retail concept, they don’t have plans to stray away from their larger-format stores anytime soon.
“This is how we have accelerated in our ambition to become more accessible. It’s never going to be that we go back to only opening big stores. It will be a mix of formats, including smaller stores closer to where people live or work or move,” said Jon Abrahamsson Ring, IKEA’s newly-appointed Chief Executive Officer.
IKEA’s growth efforts reflect a common theme in the industry to reinvent retail spaces to target new markets, provide omnichannel solutions and bring convenience to consumers. The retailer has spent the last few years modernizing their business to keep up with consumer demands, and this expansion serves as a key part of this initiative.
Since its 1943 founding in Sweden, IKEA has offered home furnishings of good design and function at affordable prices. Ingka Group, a strategic partner and the largest franchisee of the IKEA franchisee system operates 367 IKEA stores and touchpoints in 30 countries, including 48 in the U.S. During the past year, 160,000 co-workers welcomed 838 million visits to IKEA stores and more than 2.35 billion visits to IKEA.com.