IKEA, the Swedish retailer that opened a furniture store in Canton, may be seeking to open another location in Michigan, according to reports.
The company, based in the Netherlands and known for pick-it-up and assemble-it-yourself furniture, said it has not announced plans to open a second Michigan store and would neither a confirm nor deny reports that it is seeking to build another store in Michigan.
“We haven’t communicated that yet,” IKEA spokeswoman Monda Astra Liss said, pointing out that no public announcement has been made. “If we haven’t posted it yet, if we haven’t communicated it yet, then we wouldn’t be able to acknowledge it one way or another.”
Crain’s Detroit Business, citing “sources familiar with the search who requested anonymity,” reported Monday that IKEA is “looking in the Detroit area for a location for a new store that would complement its Canton Township flagship in Michigan.”
Crain’s reported that IKEA aims to build a 300,000 square-foot store, potentially at I-94 and Hall Road in Macomb County, and suggested Oakland County also has sites that could be contenders — those now occupied by the Pontiac Silverdome, the Palace of Auburn Hills, and Summit Place Mall in Waterford Township.
Since IKEA opened in 2006, the 355,000-square-foot IKEA store has been a draw for customers throughout the state who are seeking lower-priced furniture and Swedish meatballs, which the retailer serves in its cafeteria.
The store, which is near I-275 and Ford, sells more than 10,000 items, including home goods.
Two years ago, IKEA added 44,000 square feet to its Canton store, demolishing an adjacent, former ABC Warehouse to make room for the expansion. It also made road improvements in the area to alleviate traffic congestion.
IKEA, an international company, has more than 350 stores worldwide.
In September, the company announced that it is acquiring the handyman app TaskRabbit.
TaskRabbit helps people in 40 U.S. cities and London search for contractors, called “Taskers,” who can be hired for various tasks ranging from laundry to moving. One of its categories is called “assemble Ikea furniture.”
Retail commerce sales of furniture and home furnishings in the U.S. is expected to be $36.53 billion in 2017, up 16.1% from $31.47 billion last year, according to New York-based research firm eMarketer. By 2020, it is projected to hit $55.33 billion.
But, young furniture buyers are spending less on furniture than previous generations. For instance, to redecorate their living rooms, millennials planned to spend $1,500, while for generation X it was $2,500, and baby boomers, $3,000, according to a 2016 Furniture Today survey.
Meanwhile, Art Van Furniture — the Warren-based furniture company that was sold last year to Boston-based private equity firm Thomas H. Lee Partners — is building a new store across the street from IKEA in Canton.
To signal the competition in Canton, Art Van said it is putting up a sign that says “welcome” in Swedish.
