IKEA will spend $300 million to expand its stores in the United States.

(AFP)

[Financial Channel/Comprehensive Report] Ingka Group, the parent company of IKEA (IKEA), the global furniture chain leader, announced that it will invest 300 million euros (about NT$10.2 billion) in the next three years to expand its stores in the United States. Highest investment amount ever.

The first IKEA store in the United States was opened in 1985. At that time, it was mainly because American consumers were short of money and their consumption power for high-priced goods was reduced. When the demand for low-priced goods increased, they decided to take the opportunity to enter the United States to grab market share.

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According to the latest news from Ingka Group, it will spend 300 million euros (approximately NT$10.2 billion) to open 8 new large IKEA stores and 9 small stores in the United States. Opening new stores this summer in San Francisco, California, and Arlington, Virginia, and overhauling existing IKEA stores.

In addition, Tolga Oncu, head of Ingka’s IKEA retail business, also said that there are business opportunities in every state in the United States, “especially in the southern United States, where there is a huge market demand, and we have not yet developed it.” Due to the impact of high inflation, consumers The decrease in willingness to buy has led to the closure of large stores such as Wal-Mart, the leading retailer in the United States. This has given IKEA the opportunity to expand vigorously and seize the opportunity to seize the market.

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