Ikea's owner plans to spend €3bn (£2.6bn) by the end of next year on new and existing stores as it repurposes its out-of-town outlets into e-commerce distribution centers.
Tolga Öncü, retail manager at Ingka, which owns most Ikea stores worldwide, said the company plans to spend €1.3bn on stores in London, acting as a test market for new store formats and logistics.
Most of the work will be done in existing stores, and automation of out-of-town stores' warehouse sections will account for a large portion of the investments, Öncü said.
Giving an example, an IKEA store in Finland was said to have been rebuilt to also fulfil customer online orders, allowing orders to be distributed "in half the time and with 40% reduced cost of delivery for pick-up parcels".
There will also be investment in more mature markets such as Germany and Spain, as the group sees potential to expand.
New 'blue box' stores are to be opened in Romania, China, and India, along with new city stores and planning studios in Canada, Denmark, Italy, India, and the US.
The plan comes at a time when consumer spending has weakened in some markets, such as the UK, making many businesses cautious due to the lingering geopolitical tensions and high inflation.
Ikea has enjoyed record sales of its discount home furnishings as people spent more time at home during the pandemic.
The new investment will follow the €2.1bn Ingka has invested over the past three fiscal years.