Ikea drops plans for second Boston-area store

Clint Engel -- Furniture Today, July 20, 2012

SOMERVILLE, Mass. — Swedish home furnishings giant Ikea has dropped plans for a second Boston-area store here, saying it now intends to sell its property.

In a letter sent to Somerville's mayor Thursday, the Top 100 company recalled how it began discussions with the city nearly 15 years ago about building a store at Assembly Square here.

Ikea initially planned to open a Somerville store in 2004, but was hit with delays, including a court challenge from a community group. What had been expected to be its second area store - a 350,000-square-foot Ikea in Stoughton, Mass. - ended up opening first in November 2005.

In the letter, Ikea said it has continued to assess the Stoughton store's performance and evaluate regional consumer shopping patterns.

"Based on the regional draw of Ikea, we have concluded that the immediate needs of our Boston-area customers currently are being served effectively by the existing Stoughton store" and that a second store isn't needed "for the foreseeable future," the letter said.

It noted that the decision wasn't easy and came after years of planning and millions of dollars invested in the project.

Ikea is No. 2 on Furniture/Today's Top 100 with 38 U.S. stores and estimated U.S. furniture, bedding and accessories sales of $2.28 billion for its fiscal year ended Aug. 31, 2011.