Ikea CEO confirms $2.2bn is ‘biggest ever investment’ as retailer is set to make major change to it furniture footprint

IKEA is opening 17 new stores and remodeling its existing locations as part of a $2.2 billion strategy.

The retailer is making its largest investment ever in the US to improve the shopping experience and reduce its energy consumption.

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Ikea announced on Thursday that it would invest $2.2 billion in the US over the next three years – a move that will create around 2,000 new jobs.

The Swedish chain will open 17 new stores in total, but nine of them will have a new format called Plan & Order points.

These stores will be scaled-down versions of flagship Ikea locations.

Inside, customers can make their shopping decisions with the help of an advisor and have items delivered to their homes – but all inventory will not be stocked in these stores.

In parallel to the well-known existing Ikea supermarkets, of which there are currently 51 nationwide, eight new branches will be opened.

Enhanced modernizations such as energy efficiency, solar panels and electric vehicle fleets are making their way into existing markets.

Ikea is also further integrating its digital and in-store shopping experiences, which means more advanced in-store digital shopping technologies will be available to customers.

To improve its customer service, Ikea is opening 900 new collection points – some in Ikea stores, some not.

In addition, the company wants to handle 100 percent of its deliveries exclusively with electric vehicles by 2025.

Overall, the $2.2 billion investment is the largest the company has made in the United States since opening its first North American store in 1985.

Ikea US Chief Executive Officer Javi Quiñones told CNBC, “The whole intent here is to be closer to a lot more Americans.

“We started here in the US almost 40 years ago and this is the biggest [investment] we ever did.”

THE FUTURE OF PURCHASING

Ikea isn’t the only retailer investing heavily in their shopping experience.

Competitor Target recently unveiled a $4 billion to $5 billion investment strategy that will bring five key changes to customers.

First, the company will introduce more cost-conscious products priced at $3, $5, $10, and $15.

Next, Target will expand its Drive Up Returns service, allowing guests to initiate their returns through an app and have a team member come out to collect their unwanted items.

Around 20 new stores across the country are also on the way.

Target will introduce more shop-in-shop experiences with Ulta Beauty and Apple, as well as continue updating and redesigning approximately 175 existing locations.

Finally, the chain is expanding its network of sorting centers from nine to 15 to increase its next-day delivery capacity.

Walmart is also updating its stores to create what it calls the “store of the future.”

These revamped locations feature room-sized displays similar to those you’ll find at Ikea and digital touchpoints that integrate online and in-store shopping.

Walmart plans to implement the Store of the Future remodel in 28 stores across the country.

It’s not all good news for retailers – check out The US Sun’s comprehensive list of stores closing this month.

And why two major chains fled a US city for “security reasons.”