Texas Border Business
By Roberto Hugo González
PHARR, Texas – The City of Pharr is celebrating a major milestone with the grand opening of IKEA’s first small-format store in the United States and the company’s first location in the Rio Grande Valley. City leaders, business partners, and IKEA executives say the project represents years of persistence, regional growth, and strong community partnerships.
Victor Perez, President and CEO of the Pharr Economic Development Corporation (EDC), recalled the lengthy process of securing the store. “We worked really hard. We traveled to several conferences—one in Dallas and another in Las Vegas—and we kept trying to connect with the IKEA team,” he said. “A couple of times we were told, ‘We’re not planning to open any more stores in the U.S.,’ and of course, we came back a little disappointed. But we kept at it.”
After years of effort, Perez reached out to the Levine family, owners of Pharr Town Center, to help attract the retailer. “They’re well respected, deeply connected, and longtime business leaders,” Perez explained. “So, I went to them and said, ‘Guys, you’ve got to help me with this—we need to make this happen here.’”
The location became available after Joann’s and Sears closed in Pharr, providing an ample retail space ready for redevelopment. Perez said the smaller store size fits new shopping trends. “It’s similar to what Walmart and Target have done with their neighborhood formats—adapting to new shopping trends that really took shape after COVID.”
For Perez, the economic impact is clear. “We really hit a home run with this one,” he said. “The type of sales IKEA generates is significant, and that’s vital for us. Our municipalities rely heavily on sales tax revenue, since there isn’t much funding beyond property taxes. So, bringing in strong retail like this makes a huge difference for our community.”
The Pharr store covers 44,000 square feet, employs more than 40 workers—mostly local hires—and features a bistro offering IKEA’s well-known Swedish meatballs and hot dogs. It is scheduled to open to the public on October 1, 2025, with doors opening at 10 a.m., following morning festivities that include a DJ, giveaways, and prizes.
IKEA executives said the Valley’s rapid growth made it a prime location. “We are committed to expanding in the U.S. In 2019, we announced a $2.2 billion investment to grow our presence here,” said Janeli Castrejana, Marketing Campaign Leader for IKEA Central U.S. “That’s why opening in the Valley is such an exciting milestone. This is the first store of its kind in the region, and even for us at IKEA, it represents a new way of opening and serving communities.”
As part of its community commitment, IKEA announced a $10,000 donation to the Rio Grande Valley Food Bank. “We’re not just a big-box store; we want to be true community members,” Castrejana said. “We welcome feedback—what you love about the store, what we can improve, and how we can best support this community.”
Local leaders say the store will benefit the entire Valley. City Commissioner and Pharr EDC board member Dr. Ramiro Caballero noted, “For the Valley, it’s going to be very nice, because medical school, colleges, a lot of young people, and first-time home buyers—this will be a great store to come to and shop. For IKEA to have chosen us to come here, of course, means a lot to the EDC, but for the city of Pharr as well.”
IKEA officials expect consistent demand. “We expect this store to be bustling from the very beginning,” Castrejana said. “Customers here are incredibly committed, and we anticipate a shopping pattern that’s quite different from many of our U.S. stores. Here, we know it will be a steady, continuous flow of shoppers and commerce.”
For Keena Garcia, Market Manager for the San Antonio area, the Valley represents both opportunity and culture. “There’s been so much development here over the past several years, and the expansion seems like this is the hot place to be for a lot of families coming to grow,” she said. “Everybody has a price point that you can come to IKEA and shop for. Our whole goal is to be for the many.”
As Pharr prepares to cut the ribbon, leaders and company representatives alike say the project is more than a retail opening—it is proof of persistence, partnership, and regional growth. Perez summed it up: “We stayed persistent, and we made it happen.”
