IKEA is a global icon, known around the world for its affordable, stylish and functional home furnishings. With over 450 stores across 60 countries, the Swedish retailer has brought its unique shopping experience to millions of customers. In the United States alone, IKEA operates 50 stores, including locations in most major cities.
However, one state that has yet to be graced by the presence of an IKEA is New Mexico. The Land of Enchantment boasts stunning natural beauty, a rich cultural heritage, and a growing population – but no big blue and yellow IKEA stores. This has left many New Mexicans wondering: is IKEA coming to New Mexico or Albuquerque?
Understanding IKEA‘s Expansion Strategy
To understand whether New Mexico is a likely candidate for a new IKEA location, it‘s helpful to look at how the company decides where to open stores. While IKEA is known for its global reach, it takes a very strategic and selective approach to expansion.
According to the company, IKEA looks for locations with a population of at least 2 million people within a 40-60 mile radius. This ensures that each store has a large enough customer base to be profitable. IKEA also prefers locations with good highway and public transit access to make it easy for shoppers to visit.
In addition to population and accessibility, IKEA considers several other factors when choosing new store locations:
- Economic stability and growth potential of the area
- Availability of large plots of affordable land for development
- Business-friendly environment in terms of taxes, regulations, and permitting
- Proximity to key infrastructure like ports and railways for supply chain efficiency
- Alignment with IKEA‘s sustainability goals and values
New Mexico‘s Population Challenge
So how does New Mexico stack up against IKEA‘s criteria? The biggest obstacle is population. With just over 2.1 million residents, New Mexico is the 36th most populous state in the nation. However, those residents are spread out across a vast area of over 121,000 square miles.
The state‘s largest city, Albuquerque, has a population of about 560,000 people. The metro area, which includes several surrounding communities, totals around 910,000 residents. This falls well short of IKEA‘s target of 2 million people within a 40-60 mile radius.
To put this in perspective, let‘s look at where IKEA has chosen to open stores. The company‘s US locations are concentrated in densely populated states like California, Texas, Florida, and New York. The smallest metro area with an IKEA is New Haven, Connecticut, which has over 850,000 people in the city proper and a total of nearly 1.5 million in the combined statistical area.
Even cities like Phoenix and Las Vegas, which are located in sparsely populated states like New Mexico, have much larger metro area populations. Phoenix is home to 4.8 million people, while Las Vegas has over 2.2 million residents in its metro. This gives IKEA confidence that a store in these locations will attract enough shoppers to thrive.
Could Population Growth Make New Mexico More Appealing?
While New Mexico‘s current population falls short of IKEA‘s criteria, could future growth make the state more attractive? New Mexico‘s population has been steadily rising over the past decades, though slower than the national average. Between 2010 and 2020, the state grew by 2.8%, compared to 7.4% growth nationwide.
Albuquerque, the state‘s largest city, grew by 3% in that same period. However, the pace of growth seems to be picking up. From July 2020 to July 2021, Albuquerque added over 4,300 residents, a 0.9% increase in a single year.
At the current rate, it would still take many decades for Albuquerque to reach a population of 2 million. However, if growth accelerates due to factors like remote work migration, climate change relocation, or economic development initiatives, the metro could become more appealing to retailers like IKEA sooner than expected.
How New Mexicans Can Still Shop at IKEA
Just because there‘s no IKEA store in New Mexico doesn‘t mean residents are completely out of luck. Like most retailers, IKEA has heavily invested in e-commerce to complement its brick-and-mortar locations. New Mexican‘s can browse and purchase IKEA‘s full range of products online at IKEA-USA.com.
IKEA offers several delivery options for online orders. Small items can be shipped quickly and affordably via FedEx or UPS. For larger furniture orders, IKEA contracts with local delivery companies to bring items right to customers‘ doors, usually within a 1-2 day window.
Shipping and delivery fees vary based on order size and distance from the nearest IKEA warehouse. In some markets, IKEA also offers an in-home assembly service called TaskRabbit, though this isn‘t yet available in New Mexico.
For those who prefer the traditional IKEA shopping experience, a road trip may be in order. The closest IKEA stores to New Mexico are:
- Tempe, Arizona (420 miles from Albuquerque)
- Draper, Utah (580 miles from Albuquerque)
- Centennial, Colorado (450 miles from Albuquerque)
- Round Rock, Texas (700 miles from Albuquerque)
A visit to one of these locations could make for a fun weekend getaway, especially when combined with other area attractions. However, the cost of gas, lodging, and transporting purchases back home does add up. For most New Mexicans, online shopping is the most convenient way to access IKEA‘s offerings.
The Economic Impact of an IKEA Store
While New Mexico may not be a prime candidate for an IKEA store today, it‘s still interesting to consider the potential economic benefits if one did open in the future. IKEA stores are major job creators and tax generators for local communities.
A typical IKEA location employs around 300 people across various roles including sales, customer service, warehouse, and food service. The company is known for offering competitive wages and benefits like health insurance, retirement plans, and tuition assistance.
In addition to jobs, IKEA stores generate significant tax revenue for state and local governments. A study by the University of Tennessee found that a single IKEA store contributes over $11 million in annual tax revenue, including sales tax on retail purchases and property tax on the building and land.
IKEA‘s presence can also have a ripple effect on the local economy. The stores tend to attract other businesses, especially in the restaurant and home goods sectors, that want to capitalize on the increased foot traffic. This can help spur even more job creation and economic activity.
Of course, these benefits have to be weighed against potential downsides like increased traffic, competition with local furniture sellers, and environmental impact of a large retail operation. However, most communities view landing an IKEA as a major coup.
Local Alternatives to IKEA
Until IKEA arrives in the Land of Enchantment, New Mexicans have several local options for finding stylish and affordable home furnishings. Albuquerque in particular has a vibrant furniture retail scene, with options including:
-
American Home Furniture & Mattress: A locally-owned chain with several locations offering a wide selection of living room, bedroom, and dining furniture
-
Urban 9 Furniture: A family business specializing in contemporary and modern furniture designs sourced from around the globe
-
Furniture Row: A national retailer with an Albuquerque location selling furniture, mattresses, and decor from several in-house brands
-
Rare Blessings Gallery Furnishings & Decor: An eclectic shop featuring handcrafted furniture and home goods from local artisans and global craftsmen
-
Nob Hill Furniture: A quaint neighborhood shop offering vintage and lightly used furniture and home accessories
In addition to local retailers, New Mexicans can shop the many online and direct-to-consumer furniture brands that have proliferated in recent years. From Article to Wayfair to Joybird, there‘s no shortage of options for finding trendy and affordable furnishings delivered right to your door.
Could New Mexico Woo IKEA?
While an IKEA store may not be on the immediate horizon for New Mexico, that doesn‘t mean local leaders shouldn‘t start strategizing about how to attract the retailer in the future. As the state‘s population and economy continue to grow, it may become a more appealing market for IKEA down the road.
One tactic could be to offer IKEA incentives like tax breaks, free land, or infrastructure improvements to offset the higher costs of building in a smaller market. States and cities routinely compete for major corporate expansions by putting together appealing incentive packages.
New Mexico could also work to raise its profile as a business-friendly destination. The state has made strides in recent years to diversify its economy and attract employers in industries like technology, renewable energy, and film production. Continuing this momentum could help put New Mexico on the radar of more major retailers.
Finally, local leaders and residents could reach out directly to IKEA to express their interest in a store. The company does consider customer feedback when making expansion decisions. A grassroots campaign to demonstrate demand for IKEA in New Mexico could help convince executives to give the state a closer look.
The Bottom Line
While there are no immediate plans for IKEA to open a store in New Mexico or Albuquerque, local residents shouldn‘t give up hope. As the state‘s population and economy continue to grow, it may become a more attractive market for the retailer in the future.
In the meantime, New Mexicans can take advantage of IKEA‘s online shopping and delivery options to access the company‘s popular products. And with a little creativity and perseverance, local leaders may be able to woo IKEA to the Land of Enchantment sooner than expected.
What do you think? Would you like to see an IKEA store open in New Mexico? Let us know in the comments!
