IKEA’s largest retailer, Ingka Group, has revealed plans to invest more than €3bn ($3.16bn) to expand its store network by the end of next year.
The company will open downtown locations in cities and upgrade its existing locations to fulfil online deliveries.
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By GlobalDataIngka Group will open its first city stores in Stockholm, Sweden, and Toronto, Canada, over the coming months.
These stores will house more than 2,000 products and offer immediate takeaway and larger furniture items for home delivery.
Ingka Group will open one store in Nice, France, on 11 May.
In Canada, the company will add a distribution centre in Quebec and a planning studio in Montreal.
In addition, Ingka is investing nearly €1.2bn in London, UK, to open a new store in Oxford Street, as well as a distribution centre in Dartford to enable home delivery service within 24 hours across London.
The company is planning to open a pick-up point and a third city store in Madrid, Spain, where it has three traditional stores and two city stores.
At the same time, Ingka Group will continue investing in countries such as Germany and Spain, where it has established operations.
Ingka Group retail operation manager Tolga Öncü said: “More than ever before, we want to optimise our network of stores in order to cater for an inspiring shopping experience – no matter how or where our customers choose to engage with us.
“With this investment, we aim to secure the long-term viability of our business by making IKEA more accessible, more affordable and more sustainable.”
Over the last three years, Ingka Group invested more than €2.1bn in existing and new stores across the 32 markets in which it operates.
Last November, IKEA revealed plans to open a $449.8m shopping centre in Gurgaon in Haryana, India.