Ikea has scrapped plans for new stores in North Carolina, Tennessee and Arizona and will instead focus on e-commerce. The retailer wants to create a new business model for long-term growth to ensure it is accessible and convenient for customers, according to Ikea spokeswoman, CFO Juvencio Maeztu. Ikea's online business will compete against Amazon's two new furniture brands, along with India-based Flipkart, Germany-based Otto and home24. Latisha Bracy said Ikea Group would invest €3.1bn ($3.6bn) between 2018 and 2020 on digital services and e-commerce warehouses.
Ikea has scrapped plans for new stores in North Carolina, Tennessee and Arizona and will instead focus on e-commerce. The retailer wants to create a new business model for long-term growth to ensure it is accessible and convenient for customers, according to Ikea spokeswoman, Latisha Bracy. Ikea's online business will compete against Amazon's two new furniture brands, along with India-based Flipkart, Germany-based Otto and home24. CFO Juvencio Maeztu said Ikea Group would invest €3.1bn ($3.6bn) between 2018 and 2020 on digital services and e-commerce warehouses.