IKEA is investing $2 billion USD in the US to open more stores.
👉 Background: IKEA is the affordable home furniture where everything comes in flat packs and in names that you can’t pronounce. The first Aussie IKEA store launched in 1975 and the first store in the US opened in 1985.
👉 What happened: Now, IKEA has announced a $2 billion USD investment into the US to open more stores. It is looking to snag some market share in the US because it reckons its got the perfect offering in these non-perfect financial times.
👉 What else: Cash-strapped consumers are looking for more affordable products. And at the same time, it’s when others competitors are actually starting to retreat.
💡When others go defence, IKEA goes offence. As consumers spend less, large US retailers, are cutting jobs and shutting stores.
💡But this is actually creating an opportunity for IKEA to pick up cheaper stores and warehouse space. Walmart and online furniture retailer Wayfair are pulling back on staff and warehouse space. Meanwhile, Bed, Bath & Beyond has just become bankrupt.
💡And while its competitors are putting their feet on the breaks, IKEA is going pedal to the metal.
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