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April 21, 2023 : Swedish furniture retailer Ikea is set to invest more than $2.2bn in its omnichannel strategy in the US over the next three years. This marks Ikea’s largest investment in the country since it began operating almost 40 years ago. Omnichannel retailing, which involves the integration of in-store and online shopping, has become increasingly popular during the pandemic. Amazon’s purchase of Whole Foods in 2017, which saw technological advancements integrated into in-person shopping experiences, helped to popularise the trend. Walmart and Target have followed suit.
Ikea has already started to implement an omnichannel strategy, including updates to its augmented reality preview tools. Blending in-store and online shopping is particularly appealing for a home and furniture company, as customers must visualise how products will fit into their homes. The investment will be used for various purposes, including expanding new store models and pickup locations. It aims to make Ikea products more accessible and affordable while improving sustainability.
As part of the investment, Ikea will open nine “Plan & Order points”, extensions of existing “planning studios”. These will provide personalised help for larger home projects, such as kitchen and bathroom remodels. After consulting with Ikea’s in-studio planners, customers can order items to be shipped directly to their homes. The first Plan & Order point will be in Arlington, Virginia, with many more to follow. Ikea is also adding 900 new pickup locations.
According to Javi Quiñones, CEO and chief sustainability officer at Ikea US, the investment demonstrates how important the US market is for Ikea. The investment will see eight new stores added to Ikea’s existing 51 stores in the US. Combined with the Plan & Order points, adding these stores will create 2,000 new jobs. Ikea is also modernising existing stores to improve energy efficiency, installing solar panels and using electric vehicle fleets to help it achieve its climate goals. By 2025, Ikea plans to use only EVs for home deliveries.
