5 Tough IKEA Competitors in the World (Why Them?)

What name comes to mind when you think about furniture? It's most probably IKEA, right? The retail giant has over 400 stores internationally, with a reported annual net sales of about $45.5 billion in 2019. But who are the other top competitors of the company? We were wondering the same; the following is what we uncovered.

It's no secret that when people think of a location to buy furniture, the first name that springs to mind is usually IKEA. To many people, IKEA has become more than a furniture brand; the store's innovative designs have become a source of creative motivation. Ikea hacking—where fans transform their old furniture into stylish home decor—has recently gained popularity.

But even with its massive success and user base, IKEA must have competitors. So, who are they, and do they match up to IKEA standards? If you're looking for a different retailer, whether it's to research new furniture styles or simply to find a place with cheaper costs, worry not! This post has you covered.

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Who Are IKEA's Competitors?

IKEA is a well-known furniture retailer known for its affordable and stylish furniture products. Some of its main competitors in the furniture and home goods market include:

Wayfair: An online retailer offering a wide selection of furniture and home goods, including options for every budget and style.
Ashley HomeStore: A furniture retailer with brick-and-mortar locations in the US, offering a variety of furniture products for the home.
Amazon: An e-commerce giant that offers a large selection of furniture and home goods, as well as a wide range of other products.
Walmart: A retail giant that sells furniture, home goods, groceries, and other consumer products.
Home Depot: A home improvement retailer that also offers furniture and home goods products, including options for outdoor living and decor.

These companies are IKEA's competitors in the furniture and home goods retail market, providing consumers with similar products and services.

What do You Need To Know About IKEA?

IKEA is a renowned brand, mainly known for its dynamic, affordable, and hackable inventory. If you're a regular at IKEA, you're probably used to the so-called IKEA hacks. IKEA hacks enable customers to upgrade their furniture without breaking the bank. If you live within driving distance of an Ikea store, you are truly lucky. There are many benefits of shopping at IKEA.

For instance, you can score discounts once you sign up to be a member of the IKEA Family program. Additionally, certain accessories, such as tape measures, are provided, so you don't have to bring your own. Also, did you know that your kids can play and eat for free at IKEA? You don't have to worry about leaving your children at home; bring them along for the ride.

If you are not comfortable leaving children with strangers, shop with them—the store is constantly filled with children and teenagers having a good time. One more reason to love IKEA is that each product tag contains all the details you could ever want. For instance, you get the shelf number at which you can retrieve the item from the warehouse.

The item's color, material, size, and price, among other pertinent facts, are also provided. While it's true that IKEA deserves all the hype it's gotten, the company has been criticized in the past because of certain reasons. Some have criticized the Swedish-based company for producing poor quality and shoddy products that may have resulted in malfunctions and even injuries in the worst cases. Is it time to look for better alternatives? Let’s first look at IKEA's top competitors.

Details about IKEA's Competitors

Even though IKEA has a massive user base, one of the company's main challenges is the migration to online platforms such as Amazon and Wayfair. It should be noted that other traditional retailers, such as Walmart and Target, have a robust online shopping infrastructure that IKEA does not. They, therefore, have a competitive edge against the company. The following are the details of the top competitors of IKEA.

Wayfair

When it comes to online retailers selling home furnishings, appliances, and decorations, Wayfair is among the most prominent. Over ten million products from over ten thousand vendors are available through the Boston-based firm. The firm controls 4.4% of the US home furnishings market—Primarily dominant in leaving room furniture, where it has captured 23% of the market.

The corporation captures 17% of the bedroom furniture market. Moreover, 7% of the U.S. kitchen furniture market belongs to the corporation. In 2020, the company introduced online purchases giving it a competitive edge against IKEA. In many ways, Wayfair is IKEA’s most significant competitor.

Ashley HomeStore

In 2020, Ashley HomeStore was the leading retailer in the US for home furnishings and furniture. The company generated about $4.96 billion in revenue during the financial year. The retailer has since grown and currently has over 1000 locations worldwide, where 4,000 permanent employees and 23,000 part-time employees work.

Ashley Furniture Industries Inc., the business's parent firm, is well known for producing quality home furnishings. In any case, Ashley HomeStore will be a serious IKEA rival until 2022 and beyond.

Amazon

Amazon has risen to become the most dominant e-commerce platform worldwide. For this reason, all retail companies, IKEA included, see it as a significant competitor. Amazon has various filter options, making it shopping pretty convenient for customers.

The good thing about shopping on Amazon is that you have access to other products that aren't necessarily meant for home decor. Additionally, Amazon offers unrivaled fast shipping. As a result, you are always sure that your products will arrive on time.

Walmart

Walmart is one of the other significant players when it comes to e-commerce. The company offers a wide selection of home and office furnishings, including kid’s furniture, office desks, home decor, and much more. At Walmart, you will find furniture at better prices compared to IKEA. Walmart has also unveiled Walmart +, aiming to boost the company's e-commerce presence. Walmart is a significant IKEA competitor due to budget-friendly prices they offer customers.

Home Depot

If you love DIY and home renovations, Home Depot is the store just for you. Home Depot is the largest retailer of home improvement. The retailer also stocks lights, bedding, and home accents. The fact that Home Depot will match competitors' prices is a major perk of shopping there. Unlike many other businesses, Home Depot beats the pricing its competitors advertise.

The store will beat competitors' prices by 10% on in-store purchases of identical items. Online shoppers may rest assured knowing that Home Depot will match the price of any online retailer, including shipping fees.

Bottom Line

IKEA may be the go-to destination for home and office furnishings, but plenty of other vendors provide the same items at lower costs. Wayfair, Amazon, Walmart, Home Depot, and Ashley Home Store are just a few of Ikea's many prominent rivals. The fact that most of these companies have a vibrant e-commerce presence gives them a competitive advantage against IKEA. Despite this, IKEA remains a significant participant in the furniture retail industry.