Wayfair and IKEA Expand U.S. Retail Footprint Amid Home Furnishings Challenges

Market leaders take different approaches to reach customers in a tightening home goods sector

Published on Feb. 24, 2026

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As the home furnishings retail sector faces headwinds, leading players Wayfair and IKEA are both expanding their U.S. presence - Wayfair is opening more physical stores while IKEA is growing its online and remote sales capabilities. The two companies are effectively converging on each other's territory as they compete for market share in a challenged environment.

Why it matters

The home goods market has seen lackluster growth in recent years, with rising inflation and economic pressures dampening consumer demand. In this context, Wayfair and IKEA's divergent expansion strategies reflect the broader industry dynamics, as retailers look to capture market share through improved convenience, value, and customer experience.

The details

Wayfair, the online home furnishings leader, is making a major push into physical retail, opening large-format stores in several U.S. markets. Meanwhile, IKEA is expanding its e-commerce and remote sales capabilities, including a program that allows customers to connect with IKEA staff for planning and purchasing assistance. Both companies are aiming to better serve customers and gain an edge over competitors in a challenging environment marked by inflation, reduced consumer spending, and a 'lock-in effect' keeping people from moving.

  • Wayfair opened its first major 150,000-square-foot physical store in Wilmette, IL in April 2024.
  • Wayfair plans to open new large-format stores in Atlanta and Denver in 2026, and in Yonkers, NY in 2027.
  • IKEA opened 14 new U.S. stores in 2025, including two smaller 'plan-and-order' locations.
  • IKEA plans to open 10 new U.S. stores in 2026, including its first Los Angeles city-center store and first location in Oklahoma.
  • From 2024 to 2025, IKEA grew its number of online visitors from 440 million to 458 million, a 4% increase, and saw a 6% increase in remote sales.

The players

Wayfair

An American e-commerce company that sells home furnishings and decor. Wayfair has become the online market share leader in the home goods sector, but is now expanding into physical retail.

IKEA

A Swedish multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories. IKEA is the third-largest home furnishings retailer in the U.S. and is focused on growing its e-commerce and remote sales capabilities.

Niraj S. Shah

Co-founder and CEO of Wayfair.

Rob Olson

Interim U.S. CEO of IKEA.

Neil Saunders

Managing director at GlobalData, a research firm.

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What they’re saying

“Walking through a physical store gives every shopper a broad view of the breadth of our categories and the depth of our assortment, often inspiring purchases they didn't know they could get through Wayfair.”

— Niraj S. Shah, Co-founder and CEO, Wayfair (Wayfair earnings call)

“The central challenge remains unchanged: with a weak balance sheet, Wayfair has little room for error.”

— Neil Saunders, Managing Director, GlobalData (Forbes)

“Digital innovation and new store formats, like plan-and-order and our pilot program with ten Best Buy stores, were key to building the customer connection.”

— Rob Olson, Interim U.S. CEO, IKEA (IKEA earnings statement)

What’s next

Wayfair and IKEA will continue to monitor the challenging home furnishings market and adjust their expansion plans accordingly. Analysts will be closely watching to see if Wayfair's physical retail push and IKEA's e-commerce investments pay off in the face of ongoing economic headwinds.

The takeaway

As the home goods sector faces a period of stagnation, leading retailers like Wayfair and IKEA are pursuing divergent strategies to capture market share. Their willingness to step outside their traditional strengths and compete on each other's turf reflects the intense competition and evolving consumer preferences in this space.