IKEA is set to close two stores this summer, bringing its total number of shut-downs to 10 worldwide in 2026 as part of a cost-cutting strategy. The Swedish furniture and meatball giant has confirmed that its South Charlotte store in North Carolina and Austin Domain outlet in Texas will both close for good on August 30, 2026.
Official Statement on Closures
An official statement explained: “As part of our strategy to build a more affordable, accessible, and sustainable future for IKEA in the US, we have made the decision to close the IKEA Austin-Domain Texas Plan and order point with pick-up [and IKEA South Charlotte Plan and order point with pick-up] on August 30, 2026.” The company added: “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.”
Smaller Format Outlets
Both outlets were not full-scale IKEA stores with showrooms and restaurants. Instead, these smaller spots offered customers the opportunity to plan specific makeovers using IKEA products, such as kitchens. Shoppers with ongoing projects at these locations have two options: complete the project before the store closes or switch it over to any other IKEA store or online with a remote planner.
Previous US Closure
These two closures become the company’s third American closure this year, following the decision to shut down the Memphis store in May. A spokesperson said at the time: “The decision to close the Memphis store was made following a comprehensive review, and considering several factors including market share, business performance, cost structure, and overall optimization of physical assets.”
Global Closures and Expansion
China has seen the most IKEA closures this year, with seven. According to Reuters, the flat pack maestros pulled the plug on one location in suburban Shanghai, another in Guangzhou, and several more in smaller Chinese cities like Nantong, Xuzhou and Harbin in February. Cutting the number of sites follows rapid expansion by IKEA last year. In December, it opened its first New Zealand shop, a 366,000 sq ft (34,000 sqm) megastore in Sylvia Park, Auckland, along with 29 pick-up points across the country. It is also working on a project to open in Panama and Costa Rica with a franchisee, having entered the Colombian market in 2023.
Impact on Local Communities
The South Charlotte closure marks a stark departure from the fanfare which greeted the Swedes’ arrival less than two years ago, with its store sitting on a road named after the firm — IKEA Boulevard. The closures reflect IKEA’s shift towards online and delivery services, as the company adapts to changing consumer habits.
