Ikea plans to build a second store in Virginia, increasing its presence in the Southeastern U.S.
AUSTIN, Texas – Furniture retail giant Ikea is giving back to the entities that helped it weather COVID-19 shutdowns with an Ikea U.S. Community Foundation gift of close to $5 million to the State of Texas.
The exact amount, $4,900,125, is equivalent to the amount of money the State of Texas paid in unemployment insurance to Ikea retail workers in Texas who were previously furloughed for anywhere between one to eight weeks due to COVID-19 stay at home orders.
“People are the heart of our business, and the state unemployment benefits helped our co-workers during a difficult time,” said Ikea Retail U.S. President Javier Quiñones, in a release. “We now have a better understanding of the impact of COVID-19 on our business, and we’ve decided to “pay it forward” in our local communities.”
In the letter to Abbott announcing the donation, Quiñones noted that Ikea is providing funds to the state for Abbott to use where he “deems most appropriate for state needs,” but he does note that it hopes the funds will be “used for the greatest public benefit” so that it has a “positive impact on the states and the communities where Ikea Retail U.S. is pleased to operate.”
In a release from Abbott’s office, the Texas Governor thanked the retailer for its gift and commitment to the state.
“The State of Texas is grateful to Ikea and the Ikea U.S. Community Foundation for their commitment to Texas employees,” said Abbott. “Ikea has shown that it is not only an important part of the Texas economy, but (also) a valued member of the communities in which its employees live and work. Thank you to Ikea for this generous gift to the people of Texas, and I look forward to our continued partnership.”
Over the past several months, Ikea Group has undertaken donation initiatives worth more than $20 million in response to the COVID-19 pandemic. Among those initiatives are Ingka Group’s commitment to supporting emergency coronavirus relief in March with €26 million worth of in-kind donations and Ikea Canada’s commitment in April to provide approximately C$2.3 million in product and supply donations to support local communities impacted by the COVID-19 pandemic.