IKEA Expansion in the Midwest 
What are the chances that IKEA is coming to your Midwest town? Knowing a few key facts about how IKEA evaluates a market for an IKEA store, what their future plans for distribution are, and how they make decisions about market penetration helps to predict where IKEA might be coming next in the Midwest. After the jump, I’ll share a map I put together showing the liklihood of IKEA’s entrance (or expansion) into fourteen Midwest cities and you’ll learn about IKEA’s plans for Midwest distribution. Oh, and what does an IKEA train have to do with anything? You’ll find that out too…
See also: Is IKEA Coming to … [My Town]?
and The Top Three In-Demand Markets
IKEA’s Midwest Expansion Outlook
Let me preface this by saying that the following represents my own personal predictions based on what I know of IKEA’s criteria for expansion into new (or existing) markets tempered with some widely available statistics and a little thought process. Real quick, these are the primary criteria IKEA considers when entering a market -
- Population size
- Per Capita Income
- Brand awareness / Market Penetration
Despite public opinion to the contrary, IKEA does not consider the presence of a university or college, military bases or ports when evaluating a potential location’s viability.
My Predictions for IKEA’s Expansion in the Midwest
My guess is that IKEA will be looking to expand into St. Louis, MO in addition to opening a new store to complement the existing Detroit-area store currently open in Canton, MI. My money would be on a Detroit area store first, followed by a St. Louis area store with planning in earnest to begin within five years. Bear in mind, IKEA has not announced any plans beyond their current commitments to open stores in Somerville, MA near Boston and one in Centennial, CO near Denver; these statements represent my personal prediction only!
Click to enlarge
I had the opportunity to speak with Joseph Roth, IKEA’s Director of Public Affairs US, recently about new IKEA Midwestern locations, however he does not confirm or deny any rumors about potential store locations as a general rule. That said, in regard to Midwest locations, he did state that,
From a critical mass standpoint, IKEA won’t open another store [in the Midwest] until a new distribution center is opened.
IKEA’s Midwest Distribution Plans
IKEA has already laid the groundwork for a new 1.4 million square-foot Midwestern Distribution Center to be constructed in Joliet, IL beginning as early as Spring 2011. According to a March 2007 Press Release, IKEA has announced the location for this center will be on “72 acres at the Laraway Crossings Business Park in Joliet, IL, south of Chicago.”
Initial plans call for a 650,000 square-foot facility which will provide the primary inventory for IKEA stores in the Midwest: Bloomington, MN; Canton, MI; Bolingbrook and Schaumburg, IL; and West Chester, OH. The plans include a potential expansion of 770,000 more square feet if storage capacity should become necessary. This distribution center will employ approximately 150 people when opened.
Ground has not yet been broken on this facility as of January 2010 but, IKEA has purchased land and obtained all necessary city approvals. According to Roth, IKEA has ‘got it, is sitting on it and is holding until ready to pull the trigger’ on it.
Intercontinental Training
The ultimate goal for US distribution is to be able to ‘train’ all goods across the US from West to East and from East to West, although the need for intercontinental training has been characterized as ‘not immediate’. Joliet is situated as the key distribution center for rail transportation, and according to the 2007 press release, it will “allow IKEA to receive goods in Joliet by train, to manage its inventory and to distribute its products throughout North America, with a focus on IKEA stores in the Midwestern United States.”
Says IKEA North America’s Distribution Services President, Keith Keller,
This location’s proximity to rail line offers the long-term capacity, infrastructure and geography that we were seeking to complement our distribution presence in North America, and to ensure our stores can continue to offer well designed and functional home furnishings at affordable prices.
Currently, IKEA has distribution centers in Tejon, CA and Tacoma, WA in the West and in Savannah, GA, Perryville, MD and Westhampton, NJ in the East plus in Broussard, QC in Canada.
See the IKEA Press Release on the Planned Midwest Distribution Center in its entirety.
Tags: IKEA Canton, IKEA Detroit, IKEA Distribution Centers, IKEA Joliet, IKEA Midwest, IKEA St. Louis
Just FYI, yuu were looking up the wrong city when you were doing your numbers on Kansas City. The main Kansas City is in Missouri. Kansas City, Kansas is a significantly smaller suburb. The KC metro, according to Wikipedia, has a population of 2,053,928, bumping it up to your highest category. Additionally, it’s further than St. Louis from the nearest IKEA and is a larger rail hub, which would fit in neatly with their future plans.
Just wanted to add that the Kansas City Metro area does have over 2 million people (As of 2010, Kansas City Metro Area’s population is 2,015,647 people). The city is built on a state line and people don’t usually think to add the populations of KCK and KCMO together. I would add that the KC metro area is less than 30 minutes from the University of Kansas-Lawrence, the flagship university of the state, which has a population of about 100,000 and a demographic that would find IKEA especially appealing. I am begging you, PLEASE come to Kansas next!!!
The former Chrysler plant in Fenton, MO (metro STL) is being demolished now. The site contains well over 200 acres and is visible from I-44. This site would be a prime location for an IKEA store. IKEA please hurry before the owners of the property do something stupid like build another sports stadium.
Please come to the midwest – Kansas City, MO. I have had to drive all the way to MN several times already just to go to an IKEA. Please please come to the KC area. Plenty of room in Independence right along Highway I-70. Ideal location!!
You would be better off building in KC instead of St Louis. St Louis is losing population and is a more depressed area. KC is growing and expanding. IKEA – make KC your choice for Missouri.
Kansas City would be the logical choice. Most of the population of St. Louis lives well below the poverty line and could hardly effort to drive through the parking lot, much less shop at IKEA. KCMO is IKEA’s next GOLD MIND!
jason are u serious about your comment regarding st louis and most people living below the poverty line??? that is ridiculous. I think the culture,education level and income of our citizens is miles above kc.
I second the fenton idea, i hope they hurry up
I work across the highway from the Fenton, MO lot. Since my rear end usually ends up hurting from driving to Chicago to shop at IKEA (amd from being bent over the table by local lowlife furniture dealers), PLEASE come to St. Louis. You have fans here and are loved.
Besides, you would HATE Kansas City. Trust me, I’ve been there.
Listen, Johnson County, Kansas has one of the highest per capita incomes in the U.S. and is tired of driving to Texas, Minnesota, or Illinois to shop at IKEA. We won’t go to St. Louis, just look at the Container Store. Add in the Kansas City, Missouri and Kansas City, KS metros, Independence, MO and Lawrence, KS and its obvious where the next IKEA should be. If those fans in St. Louis complain about driving to Chicago, they are fair weather fans, as St. Louis is only half way to Chicago for us. Follow the money to Overland Park, KS.