The news: Ikea is proceeding with its $2.2 billion US expansion, undeterred by new tariffs on lumber, kitchen cabinets, and other furniture.

• The company acquired a Soho building to house its second Manhattan store, following a $400 million investment in a Fifth Avenue property.
• It will also open three smaller-format stores in Dallas, Phoenix, and Syracuse, New York, in the coming months.

The challenge: While US consumers are largely familiar with the Ikea brand, many are less inclined to shop at the retailer—mainly because it has relatively few stores. Ikea has just 54 big-box locations throughout the country, with no plans to increase that number. While it is in the process of adding more small-format stores, mainly in urban areas, it only has 16 of those currently.

With store expansion proceeding slowly, Ikea is turning to retail partnerships to increase its visibility.

• The furniture company is testing a store-within-a-store concept at 10 Best Buy stores to let shoppers examine its kitchen and laundry room ranges in person.
• It is also experimenting with using Best Buy locations as pickup points for Ikea orders, which could encourage more shoppers to buy online.

The big picture: Ikea is confident that its reputation for affordable furniture and home goods will help it thrive, even in a challenging housing market.

• At a time when the furniture industry is relying more heavily on discounts to move products, Ikea’s low prices give it a significant advantage over higher-priced competitors.
• US CEO Javier Quiñones told Fortune that Ikea’s emphasis on sustainability and reducing waste will appeal to customers looking to lower their food and electricity bills.