Many people remember furnishing their first apartment, an exciting milestone often challenged by the tight entry-level budget fresh out of college.
Some people hunt for bargains on Facebook Marketplace or generously accept second-hand decorations from friends and family. Others turn to a reliable retailer that seems to meet all their decorating needs without draining their bank accounts.
For some budget-conscious shoppers, IKEA is the retailer.
Today, IKEA is best known for its furniture and Swedish meatballs, but the company was founded in 1943 as a company selling pens and wallets by 17-year-old Ingvar Kamprad in Älmhult, Sweden. IKEA transitioned into the furniture industry in 1948, a move that has made it the global brand it is today, operating more than 500 stores in 63 markets around the world.
IKEA is known for its affordability, minimalist design, and compact convenience, making it a top choice for small apartments and starter homes. Now, the company is preparing to leave a community without its only brick-and-mortar location and has given no indication it plans to return anytime soon.
IKEA confirms it will close its Memphis store at 7900 Ikea Way
On May 3, 2026, the company canceled its only brick-and-mortar store in Cordova, Tennessee, which it had operated in the state since 2016, according to its store location information.
“The decision to close the Memphis store was made after a comprehensive review, taking into account a variety of factors including market share, operating performance, cost structure and overall optimization of physical assets,” Ikea said in a company press release.
While physical stores will be closed, Memphis-area customers will continue to purchase IKEA products through the company’s e-commerce platform. Home delivery and FedEx pickup locations in the Cordoba area will continue to be available.
Employees affected by the closures will be offered the opportunity to move to other Ikea locations, while those who choose not to relocate will receive severance packages, the company said.
The decision comes less than a year after IKEA completed a complete renovation of its Memphis store in 2025, redesigning the layout as part of a broader effort to modernize its U.S. operations and better serve local communities.
“We’re always evolving our store formats to improve convenience, make delivery more affordable, and connect with where our customers live, work and socialize,” Javier Quiñones, IKEA U.S. CEO and chief sustainability officer, said in a company press release at the time. “IKEA Memphis marks an important milestone in our journey to deliver a more connected and accessible IKEA experience for everyone.”
Memphis’ closure was not a one-time move. IKEA also closed several small “plan and order point” locations last year.
The closures are part of what the company describes as a “strategic shift to build a more affordable, accessible and sustainable future.”
The approach includes opening new stores, upgrading existing stores, expanding digital capabilities, and strengthening delivery and pickup services, while closing stores that no longer meet its long-term goals.
More retail store closures:
In 2023, IKEA announced plans to invest more than $2.2 billion in the United States within three years to expand its brand influence and accessibility by opening 14 new format stores in 2025, more stores in 2026, and improving logistics and e-commerce infrastructure.
IKEA’s complete financial report for fiscal year 2025 shows that total revenue fell by nearly 0.9% year-on-year, and retail sales fell by 1.1%. The company attributed the decline to price cuts introduced in 2024, which reduced margins while maintaining affordability.
Despite the decline, sales volume still increased by 2.6% and physical store traffic increased by 1.9%, indicating that consumer demand remains strong.
Approximately 69% of products are sold in physical stores and 28% are purchased online, underscoring the continued importance of IKEA’s physical stores.
Uncertainty over U.S. tariffs has led to higher commodity prices and procurement costs in the second half of the fiscal year. However, overall purchase price levels stabilized by the end of 2025, allowing the IKEA Group to maintain wholesale pricing from licensed retailers.
There are two entities under IKEA: Inter Ikea Group oversees product offerings and services, while IKEA Franchisees, consisting of 13 groups in seven countries as of November 2025, manages the retail business.
Ikea’s restructuring reflects broader challenges facing the entire retail industry. According to CoreSight Research, the number of store closures announced in 2025 is up 67% year over year.
“Vacant storefronts are increasingly common and declining commercial property values have become the norm,” said Shmuel Shayowitz, president and chief lending officer of Approved Funding. “For consumers, the consequences mean fewer choices, fewer opportunities to shop in person and, in some cases, higher prices due to less competition.”
Retail analysts warn continued closures could have significant impacts on entire communities.
Mohamed Dabo, financial reporter at Retail Insights Network, said: “Wide store closures could reduce convenience for shoppers, especially in smaller towns. In the United States, the loss of location could even create ‘retail deserts’ where daily shopping requires traveling up to 20 miles.”
Industry experts also highlighted the wider impact the shutdown could have on an already fragile economy.
“The widespread closure of physical retail stores in the digital era has had a significant impact on business outcomes, urban communities and regional economies,” said industry experts at ScienceDirect. “Understanding this phenomenon is critical for retailers, policymakers and society at large.”
The latest employment situation from the U.S. Bureau of Labor Statistics shows that the unemployment rate in December 2025 is 4.4%, equivalent to about 7.5 million Americans being unemployed.
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This article was originally published by TheStreet on February 12, 2026, and first appeared in the Retail section. Click here to add TheStreet as your preferred source.
