IKEA to 10 stores this year in cost-cutting strategy

“As part of our strategy to build a more affordable, accessible, and sustainable future for IKEA in the US, we have made the decision to close the IKEA Austin-Domain Texas Plan and order point with pick-up [and IKEA South Charlotte Plan and order point with pick-up] on August 30, 2026,” an official statement said.

“We continue to test, explore, and develop new ways for customers to meet IKEA, while investing in home delivery, pick-up services and our online experience.”

It marks a stark departure from the fanfare which greeted the Swedes’ arrival in South Charlotte less than two years ago, with its store sitting on a road named after the firm — IKEA Boulevard.

Both outlets were not full-scale IKEA stores, complete with showrooms and restaurants. Instead, the smaller spots offered customers the opportunity to plan specific makeovers using IKEA products, such as kitchens.

Shoppers who have an ongoing project at the South Charlotte and Austin Domain stores have two options, the firm added: “You can complete it before the store closes or switch it over to any other IKEA store or online with a remote planner.”

The duo become the company’s third American closure this year, following the decision to shut down the Memphis shop in May. A spokesperson said at the time: “The decision to close the Memphis store was made following a comprehensive review, and considering several factors including market share, business performance, cost structure, and overall optimization of physical assets.”

However, China has seen the most IKEA closures this year, with seven. According to Reuters, the flat pack maestros pulled the plug on one location in suburban Shanghai, another in Guangzhou, and several more in smaller Chinese cities like Nantong, Xuzhou and Harbin in February.

Cutting the number of sites follows rapid expansion by IKEA last year. In December, it opened its first New Zealand shop, a 366,000 sq ft (34,000sqm) megastore in Sylvia Park, Auckland, along with 29 pick-up points across the country. It is also working on a project to open in Panama and Costa Rica with a franchisee, having entered the Colombian market in 2023.