Ikea confirmed it will close its only Tennessee store in Cordova on May 3, 2026, eliminating the company's sole physical presence in a state where it operated since 2016. The decision follows a comprehensive review citing market share, performance, and asset optimization, though the Memphis location was recently renovated. Memphis marks Ikea's first U.S. store closure since 2016, with employees offered transfers or severance.

This follows similar closures in Arlington, Virginia; Alpharetta, Georgia; and Long Beach, California, reflecting Ikea's strategic shift toward digital accessibility and away from underperforming locations. Ikea's $2.2 billion U.S. investment in 2023 aimed to expand physical stores and e-commerce, yet retail sales fell 1.1% in FY2025 amid price reductions. The closures align with a 67% rise in nationwide store shutdowns, threatening 'retail deserts' in smaller communities and signaling deeper industry challenges.