IKEA to Shutter Memphis Store, Lay Off 114 Workers

Furniture retailer cites market performance and rising costs as reasons for closure.

Published on Mar. 5, 2026

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IKEA has announced plans to close its Memphis, Tennessee location by May 3, 2026, resulting in the layoff of 114 employees. The Swedish furniture company cited a 'comprehensive business review' and factors like market performance and rising costs as reasons for the decision.

Why it matters

The closure of IKEA's Memphis store is a significant blow to the local economy, as the retailer has been a major employer and destination for furniture shoppers in the region. It also reflects broader challenges facing brick-and-mortar retailers as consumer shopping habits shift toward online purchasing.

The details

IKEA Memphis will begin laying off staff around May 9, 2026 and expects to lay off a total of 114 workers by Aug. 31, 2026. The company has filed a Worker Adjustment and Retraining Notification (WARN) with the Tennessee Department of Labor and Workforce Development, informing the state of its plans to cease all operations in Memphis by the end of August 2026. While the physical store will close, IKEA said Mid-South customers will still be able to shop online, with delivery and FedEx pickup locations in the Cordova area.

  • IKEA Memphis will begin laying off staff around May 9, 2026.
  • IKEA expects to lay off a total of 114 workers by Aug. 31, 2026.
  • IKEA Memphis will close to the public on May 3, 2026.

The players

IKEA

A Swedish furniture retailer that operates stores worldwide, including a location in Memphis, Tennessee.

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The takeaway

The closure of IKEA's Memphis store is a sign of the broader challenges facing brick-and-mortar retailers as consumer shopping habits shift toward online purchasing. This decision will have a significant impact on the local economy, as IKEA has been a major employer and destination for furniture shoppers in the region.