Becoming a global powerhouse is extremely difficult, and not many retailers manage to conquer such different markets around the world. Its success in one market doesn’t guarantee performance in another, as consumers behave differently.
That’s why, oftentimes, brands make some changes when entering new countries, as they adapt to different economic and cultural environments.
Three years ago, the Swedish home goods giant announced a major bet on the United States when it confirmed a $2.2 billion investment to expand across the country. This was the retailer’s biggest investment since its first U.S. store opened in Plymouth Meeting, Pennsylvania, nearly 40 years ago.
Over the past few years, Ikea expanded across many states, and it currently operates 77 stores in North America and 426 Ikea stores worldwide, according to its website.
However, the retailer also confirmed the closure of 13 locations so far this year, of which five are in the United States.
The majority of U.S. store closures this year belong to one store concept, and the last closure was just announced.
Ikea to close San Marcos, TX store in November
Only 14 months after it opened, Ikea is closing its small-format store in San Marcos, located along the booming Interstate 35 corridor between San Antonio and Austin. The company confirmed the store will close on November 1, 2026, as it chose not to renew its lease.
“The decision to close this store was made following a comprehensive review and considering several factors, including market share, business performance, cost structure, optimization of our physical assets, and the need to position the business for continued growth in the U.S.,” a spokesperson said, according to San Antonio Express-News.
Customers in the area can shop online or continue to visit Ikea at any of the following locations:
- Ikea Round Rock
- Ikea in Best Buy South Austin
- Ikea Live Oak
- Ikea in Best Buy Alamo Ranch
- Ikea Houston
- Ikea in Best Buy Humble
- Ikea Webster
- Source: Ikea’s official page
“By closing this store, we are able to reallocate resources to areas of growth, including opening more new format stores and enhancing home delivery, pick-up services, digital capabilities and other ways for customers to shop with Ikea,” the spokesperson added.
The latest closure follows up on the company’s recent closing of two Plan & order points with Pick-up stores, one in South Charlotte, North Carolina, and the other in Austin Domain, Texas. More importantly, these closings point to the retailer’s shift in strategy, as closed locations include small-format stores.
Why might Ikea’s smaller stores be struggling
Ikea has not said that its small-format stores are broadly underperforming, but the concentration of recent closures raises questions about whether the concept is working as intended in some U.S. markets.
One of the reasons why some of Ikea’s small-format stores in the US might be struggling could be lying in conflict with established shopping habits. For decades, many American consumers have treated an Ikea trip as an all-day destination built around sprawling showrooms and food halls.
“In the United States, visiting Ikea is generally considered an experience, probably taking most of the day,” writes OM In the News. From this perspective, shrinking the store creates a sharp departure “from the traditional Ikea experience.”
Retail analyst Ken Morris also hinted at this potential mismatch in RetailWire.
“As a massive destination store, Ikea has some parallels to Costco. The idea of a small footprint feels antithetical to both stores’ emphasis on scale and assortments,” he wrote.
Reporting specifically on the San Marcos store closure, Hoodline suggested a potential “gap in convenience,” as that specific store created a strange middle ground between big-box warehouse and online shipping. If a store requires a drive but still forces customers to wait for home delivery, it risks losing the main advantage of physical retail.
In Europe and Asia, these compact stores solve a different urban logistics challenge. Cities like London, Paris, and Hong Kong feature high population density and heavy public transit use, making car trips to distant big boxes impractical for many households.
Recent Ikea store closures
In 2026, Ikea confirmed around 13 store closures, including five in the US, seven in China ( mostly large-format suburban stores) and one small-format store in Canada.
Ikea’s US store closures 2026:
- Memphis, Tennessee: Closed a full-sized big box warehouse store in May 2026, ending its physical retail presence in the state, TheStreet reported.
- Southlake, Texas: Closed an 11,000-square-foot Plan & Order point location in February 2026, Community Impact reported.
- Austin (The Domain), Texas: Closed a Plan & Order point with Pick-up location in August 2026, TheStreet reported.
- South Charlotte, North Carolina: Closed a Plan & Order point with Pick-up location in August 2026, TheStreet reported.
- San Marcos, Texas: Scheduled to close a 35,000-square-foot small-format store in November 2026 after just 14 months of operation, Hoodline reported.
As seen in the list above, out of five confirmed closures this year, four are small-format (three Plan & Order points with Pick-up and one 35,000 sq ft small location) and only one is a large scale location.
Related: 102-year-old mall retailer quietly closes 25 stores
What is a Plan and Order point store?
I previously reported on these types of stores when Ikea opened a second new format location in the Portland metro area earlier this year.
An Ikea Plan & Order point is essentially a design studio rather than a regular store. You go there to map out complex spaces like a new kitchen, wardrobe, or living room, either using interactive digital tools on your own or sitting down one-on-one with an Ikea consultant.
The biggest difference is that you can’t walk out with any products that day. There are no boxes, lamps, or kitchenware on the shelves to take home immediately. Once you finish designing your setup and place your order, Ikea ships the items directly to your house or sends them to a local pickup spot for free collection.
What’s next for Ikea?
Despite closing select small-format locations, Ikea is far from backing out of the U.S. market. Instead, these closures reflect a tactical refinement of the retailer’s broader $2.2 billion multi-year U.S. expansion strategy.
In its FY25 Annual Summary, Ikea announced plans to open 10 new U.S. stores in 2026. These additions range from its first-ever location in Oklahoma (Tulsa) and a city-center store in Culver City, California, to new sites across Chicago, Phoenix, and the Washington, D.C. area.
Rather than relying entirely on standalone small studios, Ikea is pivoting toward flexible hybrid partnerships and improved fulfillment networks. The company has rolled out kitchen and laundry planning “shop-in-shops” inside select Best Buy stores in Texas and Florida, alongside hundreds of dedicated pick-up locations, reported Business of Home.
This strategy shift comes from a position of financial strength. Ikea U.S. generated $5.3 billion in total sales in FY25, drawing nearly 61 million in-person store visits and $1.9 billion in online orders.
By cutting underperforming locations, the Swedish furniture giant is making a strategic capital allocation to enhance its presence across the United States as it best fits American consumers.
Related: 80-year-old discount retailer closes 14 more stores, plans more
