EYE on RETAIL: IKEA’s new format
IKEA U.S. is growing its newest store format across the United States.
The home furnishings and décor retailer announced the locations for four new “Plan & order point” stores (with pick-up) that will open in 2024. The stores are planned for the Domain Shopping Center in Austin, Texas, the Atlanta metropolitan area, and two in the greater Los Angeles.
Additional locations are scheduled to open in Annapolis and Gaithersburg (Maryland), and Katy, Tex., with more to come.
The “Plan & order point” format is much smaller than traditional Ikea stores and offers personalized design consultations as well as serving as customer pickup points. No items are stocked in the store for take home.
Mission to do good
Among the company's socially-conscious deeds in 2023:
•Launched As-is online, a new service that allows Ikea members to shop gently used products from the comfort of their homes and expanded its “buy back & resell” service to more stores.
•Opened ultra-fast public EV chargers at several stores and will install a total of 500 public fast chargers and more than 300 fleet chargers in the coming years.
•Contributed over $2.5 million in retail value of in-kind and financial donations to 280 different nonprofits.
“These new format stores across the U.S. will increase accessibility for customers without compromising on quality or design, and customers can receive support from IKEA experts to plan and order home furnishing solutions such as kitchens, bedrooms and bathrooms,” the company stated in a release.
In April 2023, Ikea announced plans to invest more than $2.2 billion during the next three years in its U.S. omnichannel growth strategy. The plans include opening nine “Plan & Order points” as well as 900 pick-up locations where customers can collect purchases.
The company also shared details about the past year in its FY23 annual summary. IKEA U.S had a record year, achieving more than $6.3 billion in total sales of goods and services. The company noted it grew 6.6% compared to the previous year despite the prevailing economic challenges.
The company also noted that it dispersed a total of $54.5 million to two thirds of U.S. co-workers as part of “One IKEA Bonus”, a performance-based payout, in addition to an extra contribution to eligible co-workers’ retirement plan through its Tack! Program. It also enhanced benefits for co-workers including adding new gender-affirming covered medical procedures to the medical plan.
"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," said Javier Quiñones, CEO & chief sustainability officer at Ikea U.S. "Looking ahead, we are excited about our plans for new locations and services bringing the joy of IKEA to more hearts and homes."
Ingka Group (Ingka Holding B.V. and its controlled entities) is one of 12 different groups of companies that own and operate Ikea retail under franchise agreements with Inter Ikea Systems B.V. Ingka Group operates 375 Ingka stores in 30 countries – including 51 retail locations in the U.S.
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This article appeared first in Chain Store Age, HBSDealer’s sister publication.