Beloved furniture chain shuts number of concept locations as retail bloodbath continues
IKEA is closing more of its smaller-format stores in both the UK and California, as the global retail shakeup continues to claim big names.
The Swedish furniture giant confirmed it is shutting down three of its Plan & Order Points locations this month — two in the UK and one in the US.
The Liverpool and Stockport stores closed last week, and the final US location in Long Beach is set to shutter for good this Sunday.
Launched in 2023, the concept aimed to give customers a more tailored experience — with smaller showrooms where shoppers could meet with design specialists, place custom orders, and collect items.
But the company says the format no longer fits customer demand..
'There's been a shift toward Click and Collect, smaller accessory shopping, and on-site returns — all of which these compact stores couldn't fully support,' an IKEA spokesperson told TheStreet.
IKEA had opened 10 of these Plan & Order locations by the end of 2024 but is now reassessing the model as consumers demand more convenience and fewer in-person touchpoints.
The sudden closures come following the backlash IKEA received for a controversial Passover Seder post on social media.
The first IKEA store opened in 1958 in Sweden, and expanded to the US in 1985.
It has grown into a furniture empire and operates approximately 485 locations, 74 being in the US.
IKEA finished off its fiscal 2024 year with $5.5 billion in US revenue, a large decline from its $6.3 billion earnings in 2023.
However, it continues to be a strong competitor against other chains like At Home, competition that was on the brink of bankruptcy in May before ultimately filing earlier this month.
'While the furnishing market has been under pressure, IKEA is a far stronger retailer than many out there. And it remains extremely popular because of its value for money position,' GlobalData managing director Neil Saunders told DailyMail.com.
Saunders believes its reach in the US is one of its biggest challenges, but that Plan & Order stores are more beneficial than money losing.
'The Plan & Order Points are ways of filling in gaps and allowing people to have an IKEA experience outside of the main shops,' he said.
'They are very important for high-touch services where people like to meet in person to do things like design kitchens.'
IKEA is planning to open more concept stores this year and large-format stores between 2025 and 2026
IKEA is not letting these few shutters not falter their initial expansion plans.
In fact, the chain is planning to open more Plan & Order Points stores rather than close them.
As of now, the latest Plan & Order Points opening was in Pennsylvania last week, and its next opening will be in Maryland in July.
The chain will be opening other large-format stores in Texas and Arizona between this year and 2026.
IKEA's store openings is a twist compared to other retailers affected by tariffs imposed by President Donald Trump.
Macy's, which sells a variety of furniture, is in the process of shuttering up to 150 stores to save itself from financial ruin.
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