The Swedish home furnishing retailer IKEA has announced a strategic reorientation of its U.S. operations. It will permanently shut down its Memphis, Tennessee, store this spring. The move aims to better align with changing customer preferences and support IKEA’s broader U.S. expansion strategy.
IKEA Memphis Store Closure: A Strategic Shift
IKEA U.S. has announced it will close its Memphis store at 7900 Ikea Way, Cordova, the retail outlet the retailer has in Tennessee. It is scheduled to close permanently on May 3, 2026.
IKEA said the decision followed a review of market performance, operating costs, local demand and its broader U.S. store network. The retailer said it’s redefining its store network to better align with emerging customer demands and shopping trends.
The Memphis closure is part of a broader effort to enhance affordability, accessibility, and sustainability across its U.S. operations. This involves optimizing store portfolios, investing in online infrastructure, improving delivery and pickup, and entering new markets.
The company’s efforts to build a more responsive retail presence include opening new stores, transforming existing ones, and closing stores when needed.
Expansion and New Store Formats
IKEA reaffirmed its commitment to the U.S. market with a massive investment towards expansion and improving customer access. The company said it is investing $2.2 billion in the U.S. to bring the brand closer to where people live, work and shop.
One of the main parts of this strategy is the introduction of new-format stores. 14 openings occurred in 2025, and further openings are planned for 2026. New store formats offer planning services, design consultations and streamlined product selection that ties into online shopping.
IKEA is also boosting home delivery and pickup services. Investments in online technologies and e-commerce applications are expected to provide a smoother experience across online and physical touchpoints.
Continuous renovation of existing locations is intended to enhance layout and operations. Balancing digital innovation, improved logistics, and physical stores will enable the company to facilitate sustained growth.
Commitment to Employees and Community Impact
As the Cordova store closes, IKEA will remain available to customers in the Memphis region. Customers can still shop the full IKEA product range and home planning tools online at ikea.com. Shoppers will have a choice of home delivery services. Convenient pickup services can be provided at coordinated FedEx locations within the Cordova area.
The company said its omnichannel model means its furniture and home solutions remain available in the area, even without a physical storefront.
IKEA believes that employee consideration is always a priority when relocating stores. The company aims to retain co-workers. It provides them with the opportunity to transfer to a position in another IKEA store when possible. Employees who cannot be transferred to the new positions are supported with severance.
The closure impacts the convenience of local shoppers. However, by investing in diversified store formats and digital services, IKEA expects to increase its reach and remain relevant in the evolving retail landscape.
