Many people remember furnishing their first apartment, an exciting milestone often challenged by a tight budget, entry-level fresh out of college.
Some looked for bargains on Facebook Marketplace or graciously accepted decorations from friends and family. Others turned to a trusted retailer that seemed to fulfill any decorating need without draining their bank accounts.
For more budget-conscious shoppers, that retailer was Ikea.
While today Ikea is known for its Swedish furniture and meatballs, the company began in 1943 as a business selling pens and wallets, founded by 17-year-old Ingvar Kamprad in Älmhult, Sweden. Ikea moved into furniture in 1948, a move that would turn it into the global brand it is today and lead it to operate more than 500 stores in 63 markets around the world.
Known for its affordability, minimalist design and compact convenience, Ikea has become a choice for small apartments and starter homes. Now, the company is preparing to leave a community without its only brick-and-mortar store and has indicated no plans to return anytime soon.
Ikea has confirmed it will close its Memphis store at 7900 Ikea Way
Cordova, Tenn., on May 3, 2026, eliminating the company’s only physical presence in the state, where it has operated since 2016, according to its store locator.
“The decision to close the Memphis store was made following a comprehensive review and taking into account several factors, including market share, business performance, cost structure and overall optimization of physical assets,” Ikea said in a company press release.
While the physical location will close, customers in the Memphis area will continue to have access to Ikea products through the company’s e-commerce platform. Home delivery services and FedEx pickup locations in the Cordova area will remain available.
Employees affected by the closing will be offered opportunities to transfer to other Ikea locations, and those who choose not to relocate will receive severance pay, according to the company.
This decision comes less than a year after Ikea completed a full renovation of its Memphis store in 2025, redesigning the layout as part of a larger effort to modernize its American footprint and better serve the local community.
“We’ve improved store formats to increase convenience, make delivery more accessible and connect with customers where they live, work and socialize,” Ikea USA managing director and chief sustainability officer Javier Quiñones said in a company press release at the time. “Ikea Memphis marks a key milestone in our journey towards a more connected and accessible Ikea experience for all.”
The Memphis shutdown is not a one-off move. Ikea has also closed several small-format “Plan & Order Point” locations over the past year.
These closures are part of what the company describes as “part of a strategic shift to build a more accessible, affordable and sustainable future.”
That approach includes opening new locations, modernizing existing stores, expanding digital capabilities and strengthening delivery and pickup services while closing stores that no longer align with its long-term goals.
More retail store closings:
In 2023, Ikea announced plans to invest more than $2.2 billion in the US over three years to expand its presence and brand accessibility by opening 14 new format stores in 2025 and additional locations in 2026, along with improvements to logistics and e-commerce infrastructure.
In Ikea’s full-year 2025 earnings report, total revenue fell nearly 0.9 percent year-over-year, with retail sales down 1.1 percent. The company attributed the drop to price cuts introduced in 2024 that squeezed profit margins while maintaining affordability.
Despite the declines, sales volume increased by 2.6% and store visits increased by 1.9%, indicating that consumer demand remained resilient.
Some 69% of products were sold in brick-and-mortar stores, while 28% were purchased online, highlighting the continued importance of Ikea’s brick-and-mortar locations.
In the second half of the fiscal year, uncertainty over US tariffs pushed up commodity prices and supply costs. However, overall purchase price levels have stabilized until the end of 2025, allowing Inter Ikea Group to maintain wholesale prices for franchise retailers.
Ikea operates under two entities: Inter Ikea Group oversees the provision of products and services, while Ikea franchisees, comprising 13 groups in seven countries as of November 2025, manage retail operations.
Ikea’s restructuring reflects wider challenges in the retail sector. Announced store closings in 2025 are up 67% year-over-year, according to CoreSight Research.
“Vacant storefronts are becoming more common and declining commercial property values are the norm,” said Approved Funding President and Chief Lending Officer Shmuel Shayowitz. “For consumers, the consequences mean fewer choices, reduced access to in-person shopping and, in some cases, higher prices due to reduced competition.”
Retail analysts warn that continued closures could have major consequences for communities.
“For shoppers, widespread store closings can reduce convenience, especially in smaller cities,” said Retail Insights Network financial reporter Mohamed Dabo. “In the U.S., location losses can even create ‘retail deserts,’ where trips of up to 20 miles become necessary for everyday shopping.”
Industry experts also pointed to the broader implications the shutdowns could have on an already fragile economy.
“Large-scale brick-and-mortar retail store closures in the digital age have a significant impact on business outcomes, urban communities and regional economies,” said industry experts at ScienceDirect. “Understanding this phenomenon is crucial for retailers, policy makers and society at large.”
The US Bureau of Labor Statistics’ Labor Force Update showed that the unemployment rate was 4.4% in December 2025, representing about 7.5 million Americans unemployed.
Related: Global toy retailer suspends online operations, closes stores
This story was originally published by TheStreet on February 12, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.