Ikea is making its largest ever investment in a single country in an attempt to expand its American footprint.

The Swedish furniture giant has earmarked A$3.27 billion to be spent over the next three years as it aims to compete on scale with the likes of retail giants Walmart and Bed Bath & Beyond.

The company currently has 53 stores in the US, with Tolga Öncü, the head of the retail division at Ikea’s parent compay Ingka Group, saying this expansion will target the American South.

Öncü said this expansion will increase its US store numbers by around a third, and create 2,000 jobs.

“There are locations available that have not been available before, there are opportunities for us to speed up investments in acquiring land and existing locations to bring IKEA closer to the many people,” Öncü said.