Will This New Wayfair Physical Store Stand A Chance Against Its Competitor IKEA?

Wayfair has long dominated the online furniture shopping market, offering home goods from a variety of sellers. But online isn't enough for the retail giant anymore. Now, it's gunning for the brick-and-mortar market, where retailers like IKEA have long reigned supreme. Many deemed in-person shopping a thing of the past, but since the pandemic, more people are looking for these experiences. Capitalizing on this newfound appreciation for wandering aisles, Wayfair broke ground on its first physical store in the suburbs of Chicago, Illinois, constructing a 150,000-square-foot building that opened its doors in May of 2024, indicating a bold offensive step against its well-established competition. And with over half of the store's customers in 2024 being first-time Wayfair shoppers, the location has proven its worth in expanding the brand's customer base.

Designed by Gensler, a global architecture firm, the Chicago store replicates the large-format appeal of IKEA while bringing Wayfair's unique features from online to in-person, with 19 departments across the two-story building. Since the first store's grand opening and subsequent success, Wayfair has broadened its sights to other locations in the United States. As Wayfair further encroaches on IKEA's territory, you might wonder how the IKEA vs Wayfair battle affects your options as a consumer.

In addition to its Chicago location, Wayfair is looking to introduce two new stores in New York City and Atlanta, Georgia. Announced in March of 2025 and set to open in 2026, the Atlanta location is slated to be as large as the first location, offering furniture from Wayfair's family of brands, including AllModern, Joss & Main, and Birch Lane. This variety of quality and fashion has differentiated Wayfair from IKEA since the brand's inception in 2002, supplying a breadth of options when it comes to style and price.

In May of 2025, Wayfair followed up their Atlanta store announcement with the reveal of a third store in the works. Located in Yonkers, New York, this store is planned to open in 2027. While slightly smaller than the other two locations at approximately 114,000 square feet, it will still offer all 19 departments. Situated near distribution centers, these stores advertise fast shipping and quality in-store customer service, which may help shoppers avoid some of the common mistakes everyone makes when shopping at Wayfair, including overlooked return costs. Thanks to the convenience of a brick-and-mortar location, nearby customers can bring their items directly to the store for a return rather than ship them back.

One of Wayfair's primary benefits is the larger volume of options it offers in comparison to IKEA, but IKEA has always excelled when it comes to transparency. Many customers appreciate being able to try furniture before they buy it, laying on mattresses and lounging on couches to see if they're comfortable as well as attractive. Until recently, out of the two furniture giants, only IKEA had the option to view the furniture in real life as well as online, but the new brick-and-mortar Wayfair stores have bridged the gap between the two businesses.

While Wayfair's physical locations remain comparable to IKEA, they are a sign of Wayfair's enduring popularity, which could mean they are a greater competition to IKEA than previously thought. Both stores are considered to be great places to find the best modern furniture and decor that doesn't break the bank, but whether Wayfair will unseat IKEA as a top furniture retailer remains to be seen. Consumers should keep an eye on Wayfair as these new locations open and the business continues to grow and evolve. But with IKEA's already iconic status, memorable in-store experience, and unique benefits like its lengthy return policy, Wayfair will need to put in the work to emerge as the premiere furniture destination.