IKEA has pulled its plans to build a store in Glendale, the city confirmed on Friday.
In a statement, City Manager Kevin Phelps said he was alerted "recently" that IKEA would not be moving forward with the Glendale project, as well as other projects across the United States.
"Local representatives for IKEA indicated this decision is part of a new corporate strategy focused on e-commerce," he said. "Obviously, while understanding, we are disappointed in IKEA’s decision because we knew this location would have been hugely successful at this prime location."
In September 2017, IKEA said it had submitted plans to build a 300,000-square-foot store near Loop 101 and Bethany Home Road. At the time, IKEA said it planned to start construction in the fall with an expected opening in 2020.
"We are in a rapidly changing retail environment," IKEA said in a statement. "To be fit for long term growth, we are creating a new business model to make sure we’re accessible and convenient for our customers today and in the future."
"While this is an extremely difficult decision, we will not be moving forward with our plans to build a store in Glendale, AZ. We appreciate the outpouring of support and excitement that our fans have expressed, and we are disappointed that we will not be able to physically join the vibrant Glendale community."
Phelps said the city will be working with the owner of the 29-acre property to find a new developer.
Arizona has one IKEA store in Tempe. It opened in 2004 near Interstate 10 and Elliot Road.
