In reaction to financial strain, changed consumer habits, and increasing economic pressures, a number of large chains, including Macy’s, Big Lots, LL Flooring, and At Home, have announced broad store closures, adding to the growing issues facing the U.S. retail industry in recent months.
Even though the Swedish furniture behemoth IKEA has consistently innovated and expanded, it has not completely avoided the forces that are changing the retail industry.
According to a report, IKEA has announced that it would be closing its Plan & Order Point branch in Long Beach, California.
The store will close permanently in June. The store at 7611 Carson Blvd., which provided consumers with a more condensed and specialized version of the classic IKEA experience, will be impacted by the closure.
IKEA’s U.S. retail strategy recently included Plan & Order Points, sometimes known as planning studios.
These smaller studios, which range in size from 3,000 to 15,000 square feet, are intended to deliver IKEA’s design and planning services straight to urban areas, in contrast to the enormous warehouse-style facilities for which the brand is famous.
Despite not having a physical store, they provide a concentrated setting where clients can speak with designers and plan their home purchases using digital tools and sample materials.
IKEA has indicated that it is still committed to the planning studio concept in spite of the closure of Long Beach and two other closures in the UK.
As evidence of the company’s changing strategy for catering to a clientele that places a greater importance on convenience, customization, and regional service, a number of new Plan & Order Points are actually planned to open throughout the United States in 2025 and 2026.
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“There has been an increased demand for Click and Collect services, a desire to shop a smaller selection of home furnishing accessories, as well as the ability to return goods to physical IKEA units, something which, owing to the space available, the current location is unable to offer,” a spokesperson for IKEA stated.
Performance measures, real estate strategy, and general market pressures are probably all factors in the decision to close some sites, like the one in Long Beach.
These constraints include the influence of geopolitical events like tariffs imposed during President Donald Trump’s administration, the lasting impacts of inflation, and the increased competitiveness in e-commerce.
However, IKEA’s strategic shift indicates that it is readjusting rather than withdrawing. IKEA seems ready to satisfy customers’ demands for flexible, digitally connected retail experiences, though not at every location.
