Target could gain shoppers as Ikea closes several U.S. stores

IKEA U.S. set closure dates for three U.S. locations in 2026, a move that could send some home shoppers toward Target stores in Memphis, Charlotte and Austin. For Target team members and leaders, the immediate question is not whether traffic shifts, but whether those shoppers turn into more work in home, stronger presentation standards and better attachment on furniture, storage and decor.

IKEA said its Memphis store will close May 3, 2026, as part of a strategic shift aimed at building a more affordable, accessible and sustainable future. The company also tied the move to business performance, market share and cost structure. The Memphis store is Tennessee’s only IKEA location, and the company said customers in the area can still shop online and use local FedEx pick-up points.

Two smaller U.S. locations, the South Charlotte Plan & Order Point with Pick-up and the Austin Domain Plan & Order Point, are set to close Aug. 30, 2026. Those are not the company’s larger warehouse stores, which matters for Target because the pressure may be more about losing planning and pickup convenience than losing a full-service destination. In practical terms, that could mean more shoppers looking for quick in-stock substitutes in Target’s home aisles, especially if they want to replace the same-day stop that IKEA’s smaller format provided.

That opportunity, though, is likely to stay local and limited. IKEA has also been adding stores elsewhere in the U.S. The company said Feb. 17 that it planned four new stores in 2026, and later reporting put the number of planned openings at 10 across markets including Chicago, Culver City, Dallas, Fort Collins, Houston and Huntsville. IKEA has also pushed digital investments and omnichannel shopping, which makes it harder to read these closures as a broad retreat from the U.S. market.

For Target stores, the real test is on the floor. Watch whether home presentation gets sharper around bedding, bath, storage and small furniture, whether backroom inventory stays ahead of demand, and whether cross-selling rises in categories that can absorb displaced IKEA traffic. If the only change is a few extra guest questions and no lift in sell-through, the benefit is not real yet.