Ikea backs out of plans for first Nashville store

Update: On Tuesday evening, The Tennessean confirmed that IKEA won't open its first Nashville store in Antioch in the summer of 2020.

The Swedish furniture retailer canceled its deal to build a 341,000-square-foot mega-store off Interstate 24.

The decision wasn't based on local market factors. The company is changing its expansion strategy to align with online shopping trends.

Development plans for IKEA's first Nashville-area store are intact, despite reports that the company is rethinking the deal, the project's developer maintained Tuesday.

Plans for new stores near Phoenix and Raleigh were scrapped last week. Several other locations in development could be next, including locations in Georgia, Colorado, California and Texas, according to reports.

Last year, the Nashville store was announced four months before new IKEA CEO Jesper Brodin took the helm.

IKEA is now developing an online platform to increase its internet presence, building regional distribution centers, and considering a focus on smaller showroom-style stores closer to urban cores.

IKEA representatives did not return phone calls and emails from The Tennessean on Tuesday.

Real-estate firm Oldacre McDonald, which is developing Century Farms, a 310-acre commercial and residential complex that IKEA was expected to anchor, is still moving forward.

"We are aware of changes to IKEA's national development strategy but our agreement with the company is currently intact," developer Mark kMcDonald said, in a written statement. "Oldacre McDonald is on schedule in creating this highly desirable commercial, retail and residential destination that will further enhance the quality of life in southeastern Davidson County.”

It's not clear if the city will continue with construction of a $24 million Hickory Hollow Parkway interchange to accommodate traffic at the Interstate 24 exit where the store was planned. The work is jointly financed by the developer, the city, and the state.

Mayor David Briley's office declined to comment on the closure, but said, in an email: "Mayor Briley remains committed to investment in connectivity in fast-growing areas of the city, including this project in partnership with the state."