The flat-pack era in Cordova is coming to an end. IKEA plans to close its Memphis store on May 3, 2026, a move that state records show will affect about 114 workers. Since opening in 2016, the Cordova location has been Tennessee’s only IKEA and a regional magnet for Mid-South shoppers. The company says it will try to keep as many employees as possible through transfers or, when that is not feasible, severance.
Company cites market review and offers transfers
In a Feb. 10 press release, IKEA said the shutdown followed a “comprehensive review” of market share, business performance and cost structure. The company stated that impacted co-workers will be offered opportunities to transfer to other IKEA locations, with severance provided to those who do not transition.
State notice lists affected employees and timeline
The Tennessee Department of Labor was notified in a company filing that about 114 employees will be affected, and that separations will begin on or about May 9 and continue through Aug. 31, according to WREG. That notice is the formal step that sets off coordination with the State Dislocated Worker Unit and local workforce boards.
Local leaders criticize tax deals
Shelby County Mayor Lee Harris said he was not shocked by the timing of the closure and questioned whether the tax incentives that helped bring the store to town ultimately paid off, Action News 5 reported. The outlet notes the store opened in 2016 after a roughly $9.5 million PILOT incentive and that parts of that agreement have since been renegotiated or have expired.
What displaced workers can expect
Under the Tennessee Department of Labor & Workforce Development’s WARN guidance, companies are asked to alert the state ahead of large layoffs so rapid-response teams can help affected workers connect with training, benefits and job-search assistance. The Tennessee Department of Labor & Workforce Development explains that such notices prompt coordination with the State Dislocated Worker Unit and local workforce agencies.
Shoppers lose a regional destination as IKEA shifts strategy
The Cordova store has been Tennessee’s only IKEA location, drawing customers from across the Mid-South. At the same time, the company says it is investing $2.2 billion in the U.S. to roll out new store formats, strengthen home delivery and pickup services and modernize its physical footprint. In its Feb. 10 statement, IKEA said the shift is meant to make the brand more accessible while optimizing underperforming assets.
The Cordova store will stay open to shoppers through May 3, although company filings and the state notice indicate employee transitions could stretch into late August. Local workforce officials typically respond to closures like this with rapid-response sessions and job fairs. This story will be updated as officials announce specific assistance plans and more details for affected co-workers.
