Ikea celebrates 40 years as U.S. retailer

Conshohocken, Pa. — On June 12, 1985, Ikea opened its first store in the U.S. in Plymouth Meeting, Pa.

When it first opened, it attracted some 150,000 shoppers per week, with some waiting in lines longer than a kilometer ,or more than a half-mile.

After 40 years in the U.S., its list of accomplishments is nearly as long as those early lines. The Conshohocken, Pa.-based arm of the Swedish home furnishings retailer has grown to include 51 stores, 10 Plan & Order Points, 21,000 FedEx parcel pickup locations, 74 dedicated furniture pick-up points across the U.S. and the No. 10 spot in Home Textiles Today’s Top 50 Retailers list with an estimated $788 million in home textiles sales in 2023.

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In 1984, Ikea had 69 stores worldwide and produced sales just under $1 billion when it first entered the U.S. market. Officials were confident that its entrée into the large, untapped marketplace would be impactful.

“Our product, for the price and quality, is almost unbeatable,” Bjorn Bayley, then-president of Ikea North America, told HTT sister publication Furniture Today in a story that published in a June 10, 1985, issue. “From what we’ve seen of what’s available in the marketplace, we’re going to knock a lot of socks off.”

Today, Rob Olson, chief operating officer for Ikea U.S., recently told Furniture Today that the anniversary is a time of reflection, but it also serves as a testament to the impact that Bayley envisioned in 1984.

“When we opened our first store in Plymouth Meeting, Pa., in 1985, we had a vision to bring affordable, well-designed furniture to the U.S. market,” Olson said. “Since then, we’ve grown alongside our customers, adapting to their needs and lifestyles while staying true to our core values of making home furnishings accessible, sustainable and affordable for the many people.

“We’re so thankful to all those individuals and families who have invited Ikea into their homes and lives,” he continued. “This anniversary is not just about looking back; it’s about celebrating the journey we’ve taken together and looking forward to the next 40 years of creating a better everyday life for the many people.”

Customer focus

Olson said Ikea has been able to make that impact because its products are designed to meet the needs of the consumer from almost any possible point of view.

“Ikea thrives in the U.S. because of our unique approach to design and affordability. At the heart of our business is what we call ‘democratic design,’ which balances function, form, quality, sustainability and low price,” he said. “This philosophy ensures that great design is accessible to everyone, not just a select few.”

Plus, Olson said, Ikea has made shopping for furniture into an experience, complete with food. “We’ve also created a unique shopping experience that goes beyond just furniture. I mean, who can turn down a Swedish meatball?”

In recent years, Ikea has created the Buy Back & Resale program, which gives Ikea Family members the opportunity to sell back their gently used Ikea furniture in exchange for Ikea store credit; created a Spanish language website, marking a significant step in creating a more inclusive and accessible Ikea experience; launched the Ikea U.S. style guide, highlighting key interior design movements; and expanded its plant-based food options, including plant dogs, plant balls, veggie balls and more.

Olson said all those initiatives have come from taking and respecting customer feedback.

“We’re always listening to our customers to make sure we’re adapting to their needs. For example, we’ve increased our ability for customers to shop from their home, added services like remote planning where customers can connect virtually with our teams to plan a kitchen or closet, and increased our delivery and assembly options to support the changing behavior of today’s consumer.

“Last spring, we welcomed the newest addition to the plant-based food family: the Ikea plant dog,” he continued. “The meat-based Ikea hot dog has been savored by shoppers for more than 40 years, and the plant dog has the same snap and taste as our iconic hot dog but comes at a lower price than the meat-based option.”

Environmental steward

Being a good steward of the environment has also been key over the years. Among its key firsts, Ikea was the first major retailer to stop using plastic bags in 2008, the first to announce it would only sell LED lights in 2016 and announced its first wind farm investment in Illinois in 2014. Ikea is the only retailer with electric vehicle chargers at nearly 100% of U.S. locations and has plans to install a total of 500 public fast chargers and more than 300 fleet chargers in the coming years.

Olson said Ikea will continue to balance smart growth and environmental protection as it expands its footprint and builds for the next 40 years and beyond.

“In the next 40 years, we are committed to being an even better Ikea for our customers, co-workers and the planet,” he said. “We’re expanding strategically with new stores and new formats, and many of these smaller stores are built in existing storefronts, which reduces construction costs and environmental impact.

“It’s a win-win: we’re proud that we’re growing in a way that’s good for the planet and good for our customers.

“Another sustainability goal we’ve committed to is transitioning towards a circular business and helping our customers live more sustainably at home through initiatives like Buy Back & Resell,” Olson added. “As consumer needs change, we’ll continue to adapt, and we can’t wait to see what the next 40 years bring.”