In a significant signal for the retail real estate market, IKEA U.S. announced it will open 10 new stores across the country in 2026 — including its first city-center location in Los Angeles and its inaugural store in Oklahoma. The announcement comes alongside the company’s fiscal 2025 annual summary and represents one of the most ambitious expansion plays in the home furnishings category this year.

For commercial real estate professionals tracking large-format retail, this is a headline worth paying attention to.

Expanding Despite a Challenging Environment

IKEA U.S. reported a 4.3% year-over-year sales decline in fiscal 2025, closing the period with approximately $5.3 billion in total revenue. Foot traffic to stores dipped modestly, though the company recorded a 4% uptick in online store visits — suggesting that the brand’s omnichannel pivot is gaining traction even as in-store performance faces headwinds.

Despite the softness, IKEA’s leadership is betting on growth. Rob Olson, interim CEO of IKEA U.S., noted the company will continue prioritizing affordability, accessibility, and sustainability as it builds out its footprint — a strategy backed by a $2.2 billion commitment to omnichannel infrastructure.

A New Format Strategy: Smaller, Smarter, Closer

Perhaps the most strategically relevant development isn’t just the number of stores — it’s the type of stores IKEA is pursuing. The retailer’s Los Angeles city-center location marks a meaningful departure from its traditional big-box, suburban warehouse model. In 2025, the company also launched small-format plan-and-order points, pickup locations in California, and pop-up spots in the Chicago area.

This format evolution mirrors a broader trend Schuckman Realty has been tracking: large national retailers are rightsizing their physical presence, trading square footage for location quality and urban accessibility. The Best Buy shop-in-shop pilot IKEA launched last year is another example — the retailer offering kitchen and storage planning services inside Best Buy locations, reducing the need for full showroom footprints.

What This Means for Retail Landlords in the New York Metro

While IKEA’s current expansion announcements are focused on Los Angeles and Oklahoma, the broader implication is clear: national anchor tenants are on the move again, actively seeking new formats and markets. For shopping center owners across the Tri-State area, this is both an opportunity and a call to evaluate your current tenant mix and available space configurations.

Key questions landlords should be asking right now:

Can your space flex for evolving retail formats? City-center and smaller-format concepts require different infrastructure than traditional big-box layouts. Landlords with adaptable, well-located space have a meaningful advantage in attracting next-generation tenants.

What’s happening with your anchor situation? IKEA also announced the closure of its Memphis, Tennessee location effective May 3, 2026 — a reminder that even strong brands recalibrate. Proactive landlords are monitoring anchor health and positioning their properties with compelling alternatives before vacancies emerge.

Is your property visible to expanding national retailers? The most active tenants — from home furnishings to grocery to health and fitness — are canvassing markets right now. Strategic representation ensures your asset is in the conversation.

The Schuckman Perspective

At Schuckman Realty, we specialize in connecting landlords with the right tenants — and helping tenants identify the right locations across the New York metropolitan market. IKEA’s expansion strategy is a useful lens for understanding where retail real estate is headed: toward flexibility, urban access, and omnichannel integration.

Whether you’re a landlord evaluating your portfolio or an investor considering a retail acquisition, understanding the macro leasing environment is essential to making sound decisions. We’re here to help you navigate it.