Ikea’s will invest $2.2B in the U.S. opening hundreds of pick-up locations

Furniture and home goods retailer, Ikea announced this week it plans to invest $2.2 billion in the United States over the next three years opening new stores and “Plan and Order Points” as well as hundreds of pickup locations.

“The U.S. is one of our most important markets, and we see endless opportunities to grow there and get closer to the many Americans with affordable products and services,” Tolga Öncü, head of IKEA Retail, Ingka Group, said in a news release. “More than ever before, we want to increase the density of our presence in the U.S., ramp up our fulfillment capacities and make our offer even more relevant to local customers’ needs and dreams.”

In the first phase of the investment, IKEA anticipates opening eight new stores, nine “Plan & Order Points” and creating more than 2,000 jobs.

At “Plan and Order Points” Ikea customers can book appointments and get support from design specialists with planning and ordering home furnishing solutions that require a bit more help – such as kitchens, bedrooms, and bathrooms. Customer orders are delivered to the customer’s home or to another convenient point of delivery.

IKEA will also open 900 new pick-up locations where customers can collect purchases.

In the last year, IKEA U.S. opened 15 customer pick-up locations and two “Plan & Order points”.

Ikea said that new stores are expected to open in San Francisco, California, and Arlington, Virginia this summer. But, the company didn’t say where any of the other new stores, pick-up locations or “Plan & Order Points” will be located.

Ikea said it will continue to modernize existing stores and will increase its handling capacity at the stores for parcel deliveries directly from the store.

“The company will continue to build more effective replenishment and fulfillment capabilities while transforming last mile deliveries to ensure faster, more sustainable and more affordable deliveries,” the company said in the news release.

Ikea also said it will increase solar and geothermal technology in locations whenever possible and transition to electric vehicle trucks.

This year, IKEA U.S. launched “As-is online” which allows customers to browse and reserve gently used products online for pick up in-store. Ikea also expanded its Buy Back & Resell program, which provides customers the opportunity to sell back gently used IKEA furniture in exchange for store credit.

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