IKEA’s Bold Move: Expanding Into Best Buy Stores to Turbocharge U.S. Market Reach

Furniture giant IKEA just hacked traditional retail expansion—by moving into Best Buy's empty floor space.

The Strategy Play

Instead of building new stores, IKEA cuts deployment time by years. They're leveraging Best Buy's existing real estate footprint across America—bypassing construction delays and zoning headaches.

Market Domination Acceleration

This partnership slashes market entry costs while maximizing physical presence. Suddenly, suburban shoppers can grab meatballs and Billy bookcases alongside electronics—retail synergy at its most unconventional.

Because apparently even furniture giants get impatient waiting for permits while venture capitalists throw millions at metaverse storefronts that nobody visits.

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The MOVE is intended to speed up Ikea’s presence in mature markets. It takes years to build large stores, while space inside Best Buy stores is ready right away. Ikea says these sites are in “white spots” where it does not currently operate, including Daytona Beach and Lakeland in Florida, and Humble and Mesquite in Texas. At the same time, Best Buy gains a new reason for shoppers to walk into its stores. That may be useful as consumer electronics chains face slowing demand after a surge in the pandemic years.

Meanwhile, BBY shares have climbed a modest 1.86% yesterday, closing at $77.59.

New Formats and Global Push

Over the past few years, Ikea has changed its business model. The retailer used to rely on big warehouses outside cities. Now it offers city center shops, online ordering, click and collect services, and home delivery with assembly. Customers like the convenience, though some complain about product availability in the smaller spaces.

Globally, Ikea holds a 5.7% share of the furniture market. It aims to increase this figure and is testing new formats in both stores and online. In China, the company sells on Alibaba’s (BABA) Tmall and, since last month, on JD.comAbout one-fifth of new customers in the country now come from Tmall. Sales on JD.com in the first week were better than expected.

Executives say there are no plans to use third-party on-line sites in the United States or Europe. Instead, the Best Buy partnership may serve as a model in those regions. Ikea can use large stores as fulfillment centers for online orders, while new partnerships allow it to move faster.

Is Best Buy a Good Stock to Buy Now?

On the Street, Best Buy scores a Moderate Buy consensus rating. Out of 20 analysts’ ratings, eight rate it a Buy, with one analyst seeing it as a Sell. The average BBY stock price target is $79.67, implying a 2.68% upside from the current price.