IKEA Memphis to Close, Impacting 114 Workers

The Swedish furniture retailer cites a 'strategic shift' as the reason for the permanent closure of its only Mid-South location.

Published on Mar. 5, 2026

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IKEA has announced the permanent closure of its Memphis, Tennessee store, impacting a total of 114 employees. The closure is part of a 'strategic shift' by the company to build a 'more affordable, accessible, and sustainable future.' The first round of layoffs will begin on May 9, with all separations expected to be completed by the end of August.

Why it matters

The closure of IKEA's Memphis location marks the end of the retailer's presence in the Mid-South region. It also highlights the challenges facing brick-and-mortar retailers as they navigate changing consumer preferences and the shift towards e-commerce.

The details

IKEA filed a WARN Notice with the Tennessee Department of Labor and Workforce Development regarding the permanent closure of its Cordova, Tennessee store. The store, which opened in 2016 with the help of a $9.5 million tax break, failed to meet job and salary commitments in 2019, leading it to give back two years of its PILOT agreement with the Memphis EDGE program. The PILOT agreement is set to expire this year.

  • IKEA Memphis will officially close on May 3, 2026.
  • The first round of separations will come on May 9, 2026.
  • All layoffs are expected to be completed by the end of August 2026.

The players

IKEA

A Swedish furniture retailer and the first retail business to participate in Memphis EDGE's PILOT program.

Memphis EDGE

A local economic development organization that provided a $9.5 million tax break to IKEA for its Memphis store opening in 2016.

Greater Memphis Workforce Development Board

The organization leading the rapid response team, in coordination with the Memphis Chamber, to provide services to the 114 affected IKEA employees.

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What’s next

The Greater Memphis Workforce Development Board's rapid response team, led by the Memphis Chamber, will coordinate services with IKEA and the 114 affected employees.

The takeaway

The closure of IKEA's Memphis store highlights the ongoing challenges facing brick-and-mortar retailers as they adapt to changing consumer preferences and the rise of e-commerce. It also underscores the importance of economic development incentives and the need for businesses to meet their commitments to the local community.