After investing billions to expand its U.S. footprint, IKEA is now shutting down part of the very strategy it once viewed as key to reaching more customers.The retailer, known for its warehouse-sized stores, immersive showrooms, and iconic Swedish meatballs, has spent years experimenting with new ways to reach shoppers beyond its traditional big-box locations.As shopping habits evolve and retailers face higher operating costs and economic uncertainty, IKEA has increasingly invested in digital services, delivery options, and alternative store formats designed to make the brand more accessible.Now, that strategy is evolving once again, with two of those smaller-format locations set to close permanently later this summer.IKEA is closing two Plan & order point with Pick-up storesIKEA will close two of its “Plan & order point with Pick-up” locations on August 30, 2026, according to the company’s website.The affected stores are:South Charlotte: 10844 Providence Rd, Suite K100 in Charlotte, North CarolinaAustin Domain: 3306 Esperanza Crossing in Austin, TexasThe shutdowns will leave North Carolina with one remaining IKEA store, located at 8300 IKEA Blvd. in Charlotte.In the Austin market, IKEA will continue operating three nearby locations, including a large-format store in Round Rock, a small-format store in San Marcos, and a Best Buy Plan & order point with Pick-up location in South Austin.According to IKEA, the closures are part of its broader effort to create a more affordable, accessible, and sustainable business in the U.S.”We continue to test, explore, and develop new ways for customers to meet IKEA, while investing in home delivery, pick-up services and our online experience,” said the company in a statement.Why is IKEA closing these stores?Unlike IKEA’s traditional warehouse stores, Plan & order point with Pick-up locations are designed primarily as service hubs rather than retail destinations.Customers can meet with IKEA planning specialists for home projects, place orders, arrange delivery, or pick up online purchases. However, these locations do not carry furniture inventory for immediate purchase and do not feature restaurants or the expansive showrooms that have become synonymous with the IKEA brand.The company introduced the format in early 2023 as part of a broader strategy to make IKEA more accessible and meet customers where they prefer to shop, according to a company announcement.Expansion accelerated in 2024, and IKEA now operates approximately 32 Plan & order point with Pick-up locations across 14 states as part of its network of more than 90 U.S. stores.While the closures mark the end of this format in North Carolina and leave Austin with only one such location, IKEA continues to invest in the concept elsewhere. The company’s most recent Plan & order point with Pick-up opening occurred in Pleasanton, California, in June 2026, according to its store locator.
IKEA closes two Plan & order point with Pick-up stores.HENRY NICHOLLS/AFP via Getty Images
Recent IKEA store closuresThe South Charlotte and Austin closures are the latest in a series of IKEA store shutdowns in 2026.Memphis, Tennessee: Closed a large-format store in May, less than a year after completing a major renovation, ending its physical retail presence in the state, TheStreet reported.Southlake, Texas: A Plan & order point with Pick-up location closed in February, Community Impact reported.China: Closed seven large-format stores in early 2026 as part of a broader restructuring effort, Reuters reported.IKEA’s growth strategyAlthough IKEA is closing some locations, the company continues to pursue an aggressive long-term expansion strategy in the U.S.The retailer says the shutdowns are part of a broader strategic shift that includes opening new locations, modernizing existing stores, expanding digital capabilities, strengthening delivery and pickup services, and continually evaluating whether individual locations align with its long-term goals.In 2023, IKEA announced plans to invest more than $2.2 billion in the U.S. over three years. The investment includes opening new-format stores, improving logistics, and expanding e-commerce infrastructure to increase accessibility and support future growth.The company’s latest financial results highlight both the benefits and challenges of that strategy.During fiscal 2025, total revenue declined nearly 0.9% year over year, while retail sales fell 1.1%. IKEA attributed the decrease largely to price reductions introduced in 2024 to keep products affordable for consumers.Despite the revenue decline, customer demand remained resilient. Sales volume increased 2.6%, while store visits rose 1.9% during the year.Physical stores continued to play a central role in IKEA’s business, accounting for approximately 69% of product sales, while 28% of purchases were made online.Those results help explain why IKEA continues to invest heavily in stores, logistics, and digital capabilities while reassessing whether certain locations and formats support its long-term strategy.Here’s some of my previous coverage of store closures:After years of store closures, fashion retailer shifts strategyAfter closing nearly all locations, beauty brand gets lifelineGrocery chain resumes store closures after monthslong pauseThe company also faced higher sourcing and commodity costs during the second half of fiscal 2025 amid uncertainty surrounding U.S. tariffs. By year-end, however, purchase-price levels had largely stabilized, allowing Inter IKEA Group to maintain wholesale pricing for franchise operators.Related: 79-year-old fast-fashion retailer closes 128 stores