IKEA plans to shutter its Napa Valley warehouse and lay off 147 workers June 1, according to a state filing.
The Swedish home furnishings mega retailer, with 52 stores in the U.S. and nine in California, plans to close its massive order-fulfillment warehouse in American Canyon, about 40 miles north of San Francisco, but will take a year to lay off the workers.
The building was one of the first in the U.S. to be a part of IKEA’s new focus on shipping large and bulky items ordered online to homes or businesses.
IKEA said the company decided to close the Napa Valley facility as part of a long-term fulfillment strategy and “to provide seamless service to our customers, optimize our resources and position ourselves for growth,” according to media reports.
“The American Canyon (customer distribution center) has played a crucial role in getting our products to our customers in the West, and we’re incredibly grateful to the co-workers who help make this happen. We understand the impact this decision has on our co-workers, and we’re committed to supporting them during this transition,” a spokesperson told the business journal in an email.
In a report published in October detailing fiscal year 2023 sales, the international company said it is continuing to pull together to make IKEA more affordable to as many people as possible. The company was also focused on designing quality products by improving material development and optimizing production to offer lower prices.
