"IKEA is firmly etched into the minds of U.S. consumers with its mammoth, suburban big box stores, instantly recognizable along highways with their navy blue exteriors bearing the retailer's name in gigantic yellow letters. Its relatively affordable self-assembled furniture, with its tough-to-pronounce names and countless umlauts, and its iconic meatballs have made the Swedish retailer an American fixture since it opened its first store here in 1985, outside Philadelphia."
"But IKEA, whose stores tend to be on the outskirts of larger, more affluent cities, remains a relatively small U.S. furniture retailer and one truly well known by only a narrow sliver of the U.S. population four decades after entering this market. Last year, it took in $5.5 billion in sales, much less than rivals like Wayfair and about as much as West Elm and Pottery Barn put together. That's a tiny fraction of the $253 billion home furnishing market."
IKEA maintains strong visual and product recognition through large suburban big-box stores, affordable self-assembled furniture, unique product names, and popular food offerings. Despite that recognition, overall penetration across the U.S. population remains limited, with IKEA generating $5.5 billion in U.S. sales—far less than some competitors and only a small share of the $253 billion home furnishings market. Awareness is uneven across regions, prompting plans for greater presence. New tariffs of up to 50% on imported furniture introduce potential cost pressures, while certain IKEA cabinet components sold in the U.S. are sourced domestically.
Read at Fortune
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