Meatballs and measuring tape… Yesterday Ikea said it would invest $2.2B to build up its US biz — its biggest investment ever in a single country. Over the next three years, it plans to roll out 17 new stores, creating 2K+ US jobs. The Swedish sofa king also plans to bulk up its fulfillment centers. It notched record sales last year and has slowly grown its market share in the US (its second-largest market by sales after Germany). Now Ikea’s hoping its trendy “low cost, high quality” furniture will turn the US into its top market.
- DIY: Ikea’s planning to open nine "plan and order points," studios where shoppers can meet with specialists to design their dream home (but have the furniture delivered).
The great home retreat… (not the relaxing kind). Home-furnishing spend has plunged since the pandemic as people ditch home-office builds for Cabo trips. Furniture-store sales generally dipped 2.4% in March from a year ago. The slowdown is starting to nail some of Ikea’s rivals: last quarter, Home Depot missed its sales expectations for the first time since 2019. TJX's HomeGoods saw a 4% sales dip, and Bed Bath & Beyond is reportedly days from filing for bankruptcy. Online furniture retailer Wayfair lost 5M customers last year and posted a $1.3B loss.
One brand’s loss is another brand’s opportunity… Ikea’s US biz alone racked up nearly $6B in sales last year, attracting some 70M shoppers in stores and about 500M visits online as it kept prices stable compared to rivals. Now, as competitors like Wayfair cut jobs and scale back, Ikea’s doubling down to grow its market share.