Iconic retailer bets big on going small with new store openings | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Some of the most popular retailers were known for having warehouse-sized stores with huge aisles and product assortments one could easily spend hours browsing.

Although this technique might have worked for decades, consumer and market behavior inevitably change, which has led to declining mall traffic and the closure of many stores. That’s why retailers have begun following a new trend to boost their businesses.

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Small-format stores are a driving force for creating brand awareness and targeting more markets without spending the money it would take to develop full-size stores. These concepts require lower operation, building, rent, utilities, and staffing costs and allow companies to open more locations much faster to begin making profits.

This strategy also helps companies better adapt to uncertain economy, inflation, fast growth in online shopping, and evolving consumer trends.

IKEA opens new locations in the U.S.

Image source&colon; Zorrakino/Europa Press via Getty Images

IKEA expands its U.S. footprint with new location; more in the works

IKEA, known for having huge stores, revealed it is opening a new store in University Park, a city in Dallas, Texas, later this year. This will be the retailer’s 11th store in the state and one of three announced to open soon. The other two are located in San Marcos and Rockwall.

But this location is unlike IKEA’s original warehouse concept. It will be a two-level, 63,000-square-foot, small-format store with 3,200 on-site items, including home goods and food.

Although on-site for viewing, not all articles will be available for immediate takeaway. However, they can be ordered online, with options for free store pick-up or home delivery at a minimal fee, according to the announcement.

“Our biggest competitive advantage are our IKEA stores. This is where everything comes together under one roof and where visitors can experience our brand, our solutions, and our amazing co-workers. This location will provide a relevant food offer and a curated selection of products for immediate takeaway,” said IKEA U.S. Market Manager Ben Sandoval.

IKEA makes a strategic business move to reach more markets

IKEA has made strategic business moves to expand its footprint across multiple U.S. markets over the last few years.

In 2023, the Swedish-founded company announced it would invest over $2.2 billion to grow its omnichannel in the U.S. over the next three years by opening new stores and strengthening its fulfillment network. This was the largest investment in nearly four decades since opening operations in the nation.

“The U.S. 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,” said IKEA Head Retail at Ingka Group, Tolga Öncü, in the announcement. “More than ever before, we want to increase the density of our presence in the U.S., ramp up our fulfillment capacities and make our offer even more relevant to local customers’ needs and dreams,” he added.

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Since then, the company has opened 52 U.S. stores in various formats across 27 states as of January 2025, according to data by ScrapeHero.

In Texas, IKEA currently has five full-sized locations and three “Plan and Order points,” in addition to the three upcoming new locations.

“At IKEA, we want to create a better everyday life for many people, and one way we can do that is by bringing IKEA close to where people live, work, socialize, and shop. That’s why we’re enhancing our store formats for greater convenience, making delivery more affordable, and ensuring better connectivity with our customers in their daily lives,” said IKEA U.S. CEO & Chief Sustainability Officer Javier Quiñones. “The opening of IKEA Dallas – University Park is a perfect example of our strategy to develop smaller, more accessible urban store formats, bringing a more connected and accessible IKEA experience to everyone,” he added.