DIY

Ikea stores to receive €3bn investment by end of next year

The company will therefore focus its expansion investments in new physical stores, as well as in ‘revamping’ existing ones for a more ‘immersive’ IKEA experience

Ingka Group is set to accelerate its expansion by investing more than 3bn (£2.57bn) in new and existing Ikea stores by the end of next year to help make Ikea more accessible for customers.

It said the investment reflects the ongoing retail transformation and the company’s “unchanged determination to get closer to where customers are”, while navigating disruptions caused by the war in Ukraine and the pandemic. 

As online shopping continues to increase rapidly, the group said physical IKEA stores remain an essential part of its business model. Since September last year, 16 new IKEA touchpoints have already opened and more are planned.

The company will therefore focus its expansion investments in new physical stores, as well as in “revamping” existing ones for a more “immersive” IKEA experience and to further support the increasing demand for home deliveries. 

In the UK, almost 1.2bn (£1.03bn) is being invested in London, including in the Oxford Street store, new services, and in opening a distribution centre in Dartford that will enable home deliveries within 24 hours across the capital. 

Tolga Öncü, retail operations manager, Ingka Group, said: “More than ever before, we want to optimise our network of stores in order to cater for an inspiring shopping experience – no matter how or where our customers choose to engage with us. With this investment we aim to secure the long-term viability of our business by making IKEA more accessible, more affordable and more sustainable.

“Our stores remain one of our biggest strengths and we will continue to transform them to meet the needs of our customers for generations to come. We see many of our stores playing a dual role, giving our customers the best of both physical and online retailing and the investment will support not only an inspiring in-store IKEA experience but also a faster and more affordable shipping of online orders directly from our stores.”

He added: “Even in our more mature markets, like Germany or Spain, we will continue investing because we still see good potential to expand our business and help even more people create a better everyday life. Regardless of the size of the physical touchpoint, customers can always expect to get the same home furnishing expertise and inspiration they love about IKEA.”

Back to top button