Swedish home furnishings major IKEA will open 10 new stores across the United States in 2026, sharpening its shift toward smaller formats, urban locations and deeper omnichannel integration even as the broader home category remains under pressure.
The expansion will include the company’s first ever city centre store in Los Angeles, located in Culver City’s Helms Design District, and its first entry into Oklahoma with a store planned in Tulsa. Other confirmed markets include Gurnee Mills in Illinois near Chicago, Fort Collins, Colorado, Huntsville, Alabama, University Park and Rockwall in the Dallas region, Phoenix, Arizona, Webster near Houston and Chantilly, Virginia in the Washington metro area.
The rollout comes weeks after IKEA confirmed it will close its Memphis, Tennessee store effective May 3 following a review of store performance and market viability. The move reflects a broader recalibration of its U.S. footprint rather than a retreat.
In its FY 2025 summary, IKEA U.S. reported sales of approximately 5.3 billion dollars, down 4.3 percent year-on-year. While store visits dipped slightly, online traffic rose 4 percent, reinforcing the company’s push to align physical expansion with digital growth.
Unlike its traditional 300000 square foot suburban warehouse stores, many of the new openings will follow a smaller format model. These locations typically carry a curated assortment, offer planning services and function as order and pickup hubs. In recent years, IKEA has opened multiple Plan and Order Points and branded pickup sites to increase market penetration with lower capital intensity.
The company has also tested cross retail partnerships, including shop-in-shop kitchen and storage planning services inside select stores of Best Buy, allowing it to expand reach without building full scale units. Globally, IKEA operates under a franchise system managed by Inter IKEA Systems B.V., which owns the IKEA concept and grants franchise rights worldwide. Retail operators pay a franchise fee based on net sales and adhere to strict brand and operational standards. The U.S. business is run by Ingka Group under this franchise structure, giving it access to global sourcing, systems and brand equity while operating company owned stores domestically.
