Swedish furniture retailer IKEA's largest store owner and operator, Ingka Group, announced its plans to invest $2.2 billion to expand its operations in the USA. The investment will be made over the next three years and will mark the company's largest investment in the country to date. The expansion plan includes upgrading existing locations and opening 17 new stores, including eight big-box retail locations and nine smaller "plan and order points." The specific locations for the new stores are still being determined but the company has its eye on the South, where it sees a big demand that it has not been able to respond to. Ingka Group's head of IKEA Retail, Tolga Öncü, said in a statement that the US is one of its most important markets and it sees endless opportunities to grow there and get closer to many Americans with affordable products and services. The company aims to increase its presence in the US, ramp up its fulfillment capacities, and make its range even more relevant to local customers' needs and dreams.
In addition to the expansion announced on Thursday, Ingka Group highlighted IKEA stores that are already planned to open this summer in San Francisco and Arlington, Virginia. The company represents roughly 90% of the IKEA brand's retail sales. The investment demonstrates IKEA's commitment to expanding its footprint in the US, a key market for the company.