After investing heavily to expand its U.S. footprint, Ikea is now closing several locations, especially smaller store formats, as it continues to reassess how it reaches customers.
The retailer, known for its warehouse-sized stores, immersive showrooms, and iconic Swedish meatballs, has spent years experimenting with new ways to reach shoppers beyond its traditional big-box locations.
As shopping habits evolve and retailers face higher operating costs and economic uncertainty, Ikea has increasingly invested in digital services, delivery options, and alternative store formats designed to make the brand more accessible.
Now that strategy is evolving once again, with four of those smaller-format locations set to close permanently in the next few months.
Ikea continues to close Plan & order point with Pick-up and small-format stores in 2026
Ikea will close four of its Plan & order point with Pick-up and small-format locations, according to the company’s website.
- Georgetown, Washington, D.C.: Closing the store at 3307 M Street NW on Oct. 18.
- Annapolis, Maryland: Closing the store at 2528 Solomons Island Road on Oct. 30.
- San Marcos, Texas: Closing the store at 917 TX-80 on Nov. 1.
- Fairfax, Virginia: Closing the store at 4206 Fairfax Corner Avenue on Nov. 30.
All four stores opened in recent years: Annapolis in April 2024, San Marcos in July 2025, Fairfax in summer 2023, and Georgetown in November 2025, according to IKEA.
In announcements on its website, Ikea said the closures are part of its strategy to build a more affordable, accessible, and sustainable future for the company.
“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,” the company said.
Ikea’s previous closures
The upcoming closures follow the recent shutdown of several locations nationwide.
Here’s some of my previous coverage of Ikea store closures:
- South Charlotte, North Carolina: Closed the Plan & order point with Pick-up store at 10844 Providence Road on Aug. 30, TheStreet reported.
- Austin, Texas: Closed the Plan & order point with Pick-up store at 3306 Esperanza Crossing on Aug. 30, TheStreet reported.
- Cordova, Tennessee: Closed the large-format store at 7900 Ikea Way on May 3, TheStreet reported.
- Southlake, Texas: Closed the Plan & order point with Pick-up store at 1041 E. Southlake Boulevard on Feb. 1, TheStreet reported.
Why Ikea is closing stores
The closures come as Ikea continues to evaluate how different store formats fit into its broader U.S. strategy.
Ikea has also built Plan & order point with Pick-up shop-in-shop locations inside Best Buy stores.
The partnership is designed to give customers a more convenient way to shop for home furnishings, appliances, and technology in a single trip.
“This partnership between IKEA and Best Buy is about making great design and functionality more accessible for the many,” said Ikea U.S. COO Rob Olson in the company announcement. “By bringing together our home furnishing expertise, products, and services with Best Buy’s leadership in appliances and technology, we’re creating a one-stop destination.”
Ikea currently has 28 Plan & order point with Pick-up stores, with 10 being shop-in-shops inside Best Buy locations, according to the retailer’s store locator.
Ikea’s growth strategy
Although most of the stores slated for closure are Plan & order point with Pick-up formats, Ikea continues to pursue a long-term expansion strategy in the U.S., with plans to open 10 new stores in 2026.
The retailer says its broader strategy includes opening new locations, modernizing existing stores, expanding digital capabilities, strengthening delivery and pickup services, and continually evaluating whether individual locations and formats align with its long-term goals.
In 2023, Ikea confirmed plans to invest more than $2.2 billion in the U.S. over three years. The investment includes opening new-format stores, improving logistics, and expanding e-commerce infrastructure to increase accessibility and support future growth.
The company’s latest financial results highlight both the benefits and challenges of that strategy.
During fiscal 2025, total revenue declined nearly 0.9% year over year, while retail sales fell 1.1%. Ikea attributed the decrease largely to price reductions introduced in 2024 to keep products affordable for consumers.
Despite the revenue decline, customer demand remained resilient. Sales volume increased 2.6%, while store visits rose 1.9% during the year.
Physical stores continued to play a central role in Ikea’s business, accounting for approximately 69% of product sales, while 28% of purchases were made online.
Those results come as Ikea continues to invest in stores, logistics, and digital capabilities while reassessing whether certain locations and formats support its long-term strategy.
Related: Ikea closing key U.S. stores