Ikea to Close Three Small-Format Plan and Order Stores in U.S.

Ikea U.S. will shutter plan and order stores in Georgetown, Annapolis and Fairfax by Nov. 30, including one opened less than a year ago, as it reevaluates its small-format strategy.

Wire notes

  • Ikea closes plan and order stores in Georgetown (Oct. 18), Annapolis (Oct. 30) and Fairfax (Nov. 30)
  • The Georgetown store opened less than a year ago, on Nov. 5, replacing a shuttered Arlington, Virginia location
  • The closures follow Ikea's 2023 pledge to invest $2.2 billion over three years, including nine plan and order locations

Ikea U.S. will close three small-format plan and order stores with pick-up by the end of November, including one in Georgetown, Washington, D.C., that opened less than a year ago.

The Georgetown location shuts on Oct. 18, the Annapolis, Maryland, store closes Oct. 30, and the Fairfax, Virginia, site follows on Nov. 30, the company confirmed to Retail Dive. Workers at the affected locations can relocate to nearby stores in Baltimore; College Park, Maryland; and Woodbridge, Virginia.

Ikea framed the closures as part of its "strategy to build a more affordable, accessible, and sustainable future," according to a company email. The retailer said it continues to invest in home delivery, pick-up services and digital channels to create more customer touchpoints. Existing customers of the closing stores can continue their planning projects at other in-market locations or online using a remote planner, Ikea said.

"Plan and order points with pick-up are new format locations with a smaller footprint, designed to help customers plan big projects like kitchens, bedrooms and bathrooms, and access convenient pick-up options as part of our broader store network," the company said in the email. "Each of these locations is situated near another Ikea store."

The Georgetown store opened on Nov. 5, replacing a now-shuttered plan and order location in nearby Arlington, Virginia.

The retreat signals a reassessment of the small-format strategy Ikea laid out in 2023, when it committed $2.2 billion over three years to strengthen its U.S. fulfillment network and open new stores, including nine plan and order locations.

The pullback sits alongside continued expansion elsewhere. In February, Ikea outlined plans to open 10 additional U.S. stores this year, including its first location in Oklahoma and its first city-center store in Los Angeles. For marketers watching the brand, the closures suggest Ikea will keep rebalancing its physical footprint toward delivery, pick-up and digital channels even as it opens new full-size stores.

via techtarget.com (Original)

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Senior reporter covering media and advertising at Marketing Herald.

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