Key Takeaways
- IKEA is a privately held company that sells furniture and home goods through physical stores and online platforms around the world.
- The company operates through a complex corporate structure that has historically helped its parent entities manage and reduce tax liabilities.
- IKEA’s profitability can be affected by shifts in operating costs, supply chains, and global economic conditions.
- The company continues to expand its presence globally, including the U.S., through new stores and distribution locations.
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IKEA is a Swedish multinational company that was founded in 1943 by 17-year-old Ingvar Kamprad. It is one of the world’s largest private companies and is one of the world’s largest furniture retailers.
Most IKEA stores are operated by Ingka Holding, which is owned by the Netherlands-based Stichting Ingka Foundation. The organization is among the world’s largest charitable foundations. This ownership structure helps protect IKEA from hostile takeovers, letting the company operate independently while supporting philanthropic activities through the foundation.
IKEA’s Industry
IKEA sells home furnishings and is the world’s largest furniture retailer. The company is known for its simple Nordic designs, affordable prices, and furniture that customers assemble at home. Its large stores include cafeterias and food markets.
IKEA’s main competitors are Target (TGT), Walmart (WMT), Amazon (AMZN), Wayfair (W), CB2, Pottery Barn, and Overstock. It doesn’t operate in the luxury space but seeks to offer well-designed furniture at affordable costs, hence its popularity.
IKEA’s Financials
For the fiscal year (FY) 2025, Inter IKEA Group had total revenues of €26.31 billion. Sales of goods made up €24.86 billion, and franchise fees made up €1.32 billion. Total revenue dropped slightly by less than 1% from fiscal year 2024.
The company’s net income for fiscal year 2025 was €1.50 billion, a 32% decrease from €2.2 billion in fiscal year 2024. The reason is due to increases in the cost of goods sold and operating costs.
History and Leadership
IKEA was founded in 1943 by Ingvar Kamprad. He started off by selling pens and wallets in his hometown of Småland in Sweden. His father gave him a small amount of money, and with that, he started the roots of IKEA in 1948 by selling furniture.
In 1953, IKEA adopted the flatpack method of selling and delivering furniture to avoid high costs and high damage rates when delivering. From there, the company focused on keeping prices low due to high turnover and direct delivery.
In 1960, the company began expanding out of Sweden with stores in Denmark and Norway. In the 1970s, it expanded further, opening stores in Japan, Australia, Austria, Canada, Germany, Hong Kong, and Singapore, among others.
The company is owned by Ingka Holding, whose mission statement is “to create a better everyday life for the many people. We do this by living our values of togetherness, simplicity, and responsibility—and by creating good and affordable home furnishing solutions. As we do this, we strive to make a positive impact on the planet by acting.”
The purpose of the group’s structure of owning a holding company that controls the furniture outlets is to minimize taxes. There’s even an additional layer to the company’s structure: its intellectual property (IP) and intangible assets, including its logo, are owned by a separate company.
Jakub Jankowski is Inter IKEA Group’s current chief executive officer (CEO), and its chief financial officer (CFO) is Henrik Elm.
Recent Developments
IKEA opened 14 new stores in the U.S. in 2025, with additional store openings planned for 2026. It’s also focusing on smaller stores with a plan to open 20 new small outlets across Europe and North America in smaller cities. These stores will focus on “everyday essentials,” carrying home furnishings and accessories.
The retailer is also investing in technology. The Ingka Group bought a logistics company that will help it plan delivery routes and track shipments.
