Ikea is expanding rapidly in the U.S. - these stocks could be impacted
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Ikea plans to open 17 new stores in the U.S. in a major expansion from its current store base of 51 locations.
The Swedish home goods company is expected to spend more than $2.2B over three years and create a larger presence in the southern part of the nation.
The new locations will include eight of the massive full-size stores with the distinctive blue coloring and nine Plan & Order points. After the new round of expansion, the U.S. will likely pass Germany to become Ikea's largest global market. Ikea will also open 900 new pick-up locations that could create a boom for its online business.
"The US is one of our most important markets, and we see endless opportunities to grow there and get closer to the many Americans with affordable products and services,â said Ikea retail exec Tolga Oncu.
Jefferies analyst Jonathan Matuszewski said the Ikea expansion is worthy of investor attention. He pointed to data that showed retailers with large shopper overlaps with Ikea include Wayfair (NYSE:W), Target (TGT), Walmart (WMT), and Overstock.com (OSTK). Other retailers that could be impacted by Ikea grabbing more market share include Arhaus (ARHS), RH (RH), Ethan Allen (ETD), Haverty Furniture (HVT), Williams-Sonoma (WSM), and even Amazon (AMZN).
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