London (CNN) IKEA plans to pay 2 billion euros ($2.19 billion) to expand its range Furniture empire in the United States in what would be the retailer’s largest-ever investment in a single country.
Ingka Group, the Dutch holding company of Ikea Retail, said in a statement Thursday that it hopes to open eight large stores and nine smaller “planning and ordering points” in America over the next three years. She added that the new outlets will create 2,000 job opportunities.
The Ikea Plan and Order Points are aimed at customers who, in addition to placing orders, would like to speak with a consultant about how to design their home.
The exact locations of the new US stores have yet to be determined, an Ingka spokesperson told CNN, though the company intends to strengthen its presence on the east and west coasts, and invest more in the south of the country.
Tolga Onko, president of Ikea Retail, said the company saw “endless opportunities for growth” in the United States.
“More than ever, we want to intensify our presence in the US, increase our fulfillment capabilities, and make our group more relevant to the needs and dreams of local customers,” he said.
The company already has 51 stores and two plan and order points in America. and new Ikea websites — not covered by the €2 billion investment — scheduled to open in San Francisco, California, and Arlington, Virginia, over the summer.
Ingka also said it plans to use part of its huge investment to upgrade existing IKEA US stores to enable it to send more packages.
Founded in Sweden in 1943, IKEA is the largest in the world Furniture seller, with a presence in 31 countries. Today its stores operate as franchisees, with the Ingka Group by far the largest franchisee, accounting for about 90% of Ikea’s sales globally.
Onko told financial times Thursday predicted that the United States would overtake Germany as IKEA’s largest market in terms of sales in the next few years.
Ingka Group recorded sales of 5.5 billion euros ($6 billion) in the US in the last fiscal year, which ended in August 2022. It accounted for 5.7 billion euros ($6.2 billion) in sales in Germany during the same period.
“Web maven. Infuriatingly humble beer geek. Bacon fanatic. Typical creator. Music expert.”
Byju sues ‘predatory’ lenders on $1.2 billion term loan, won’t make further payments
The market rally holds most of the recent gains
Linda Iaccarino replaces Elon Musk as the head of Twitter