Dive Brief:
- Ikea U.S. is closing a number of its plan and order locations in the coming weeks, the company confirmed to Retail Dive.
- The retailer’s plan and order with pickup stores will close in Georgetown, Washington, D.C. on Oct. 18; Annapolis, Maryland, on Oct. 30; and Fairfax, Virginia, on Nov. 30.
- Workers at the affected locations will have the opportunity to relocate to nearby stores in Baltimore; College Park, Maryland; and Woodbridge, Virginia.
Dive Insight:
Ikea is moving to shutter some of its smaller-format stores as part of its “strategy to build a more affordable, accessible, and sustainable future,” the company said in an email.
The company said it is continuing to invest in home delivery, pick-up services and its digital channels in an effort to create more touchpoints for customers to interact with Ikea.
Existing customers of the closing stores will be able to continue their planning projects with 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 an email. “Each of these locations is situated near another Ikea store.”
The specific locations slated to shutter opened in recent years, with the Georgetown store opening less than a year ago after it replaced the now-shuttered plan and order location in nearby Arlington, Virginia.
The move appears to walk back the company’s recent strategy of opening smaller format stores. In 2023, Ikea announced plans to invest $2.2 billion over three years to strengthen its fulfillment network and open new stores, including nine plan and order locations.
Still, in February the company outlined its plans to open 10 additional stores throughout the year, including its first location in Oklahoma and its first city-center store in Los Angeles.
