IKEA

Inter IKEA Group (IKEA), the world’s largest furniture retailer, offers ready-to-assemble furniture, home accessories, and appliances. It was founded in Sweden in 1943 and is currently headquartered in the Netherlands. The group mainly operates via a franchise system; the retail stores are owned and operated by independent third-party retailers that pay 3% of net sales as franchise fees. The only exception is its flagship IKEA Delft store in the Netherlands, which is directly operated by IKEA. As of August 2023, IKEA had 12 franchising partners that operated 600 IKEA retail stores in 63 markets. These stores collectively welcomed 860 million visitors and its online channels also hosted 3.8 billion visitors in FY2023. Reported revenue for IKEA was EUR 29.1 billion (USD 31.8 billion) in FY2023, representing the wholesale sales of retail franchises, franchise fees, and IKEA Delft store sales.   

IKEA operates through three core segments: Franchise, Range, and Supply. These core segments collaborate with franchisees and suppliers to create IKEA’s franchise system. Inter IKEA Systems BV (the global franchisor and owner of the IKEA concept and brand) and its subsidiaries comprise the Franchise segment, which develops the IKEA concept and is responsible for its implementation in new and existing markets. The Range segment consists of IKEA of Sweden AB and its subsidiaries, responsible for the development and improvement of IKEA product offers (including home furnishings and food) based on the IKEA Concept Framework. The Supply segment is involved in sourcing, supplying, selling, and distributing IKEA products, based on the IKEA Concept Framework, and comprises IKEA Supply AG, IKEA Industry AB, and their subsidiaries.

IKEA retailers opened more than 70 customer meeting points around the world in urban areas, such as Madrid, Almeria, Rome, Surabaya, Bavaro, Cabo, San Francisco, Toronto, and Copenhagen. The company is operating in 63 markets across the globe, with 600 stores as of August 2023. IKEA is also on track to achieve its sustainability goals for 2030 and has multiple programs in place to become climate-positive and regenerate resources.