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{{Short description|Swedish furniture company}} |
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{{Use dmy dates|date=November 2022}} |
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{{Infobox company |
{{Infobox company |
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| name = IKEA |
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| logo = Ikea logo.svg |
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| image = IKEA (8020223012).jpg |
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| company_type = Private company |
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| image_caption = IKEA store in [[Conshohocken, Pennsylvania]] |
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| foundation = [[Älmhult Municipality|Älmhult]], [[Småland]], Sweden (1943) |
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| trading_name = IKEA |
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| founder = [[Ingvar Kamprad]] |
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| type = [[Privately held company|Private]] |
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| slogan = A better night's sleep. |
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| industry = [[Retail]] |
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| foundation = {{Start date and age|df=yes|1943|7|28}}<ref>{{cite web |url=https://www.dezeen.com/2018/08/02/ikea-75th-anniversary-gratulera-series-design-news/ |title=IKEA celebrates 75th anniversary with vintage furniture collections |work=Dezeen |last=Hitti |first=Natasha |date=2 August 2018 |access-date=25 August 2021 |archive-date=12 August 2019 |archive-url=https://web.archive.org/web/20190812063725/https://www.dezeen.com/2018/08/02/ikea-75th-anniversary-gratulera-series-design-news/ |url-status=live }}</ref> in Sweden |
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| logistics centre = [[Dortmund]], Germany |
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| founder = [[Ingvar Kamprad]] |
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| area_served = Worldwide |
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| revenue = {{Increase}} €45.1{{nbsp}}billion (2024)<ref>{{cite web |url=https://www.ikea.com/global/en/newsroom/corporate/ikea-retail-sales-fy24-241010/ |title=IKEA continues to lower prices for customers }}</ref> |
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| key_people = [[Mikael Ohlsson]] <small>(Chairman and CEO)</small><br />[[Omar Gulay]]<small> (President and CEO, Inter IKEA Group) </small><br />[[Sören Hansen ]]<small>(VP and CFO, Inter IKEA Group)</small> |
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| hq_location = [[Delft]], [[Netherlands]]<br>([[Inter IKEA Systems B.V.]])<br> |
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| genre = [[Retail]] (Specialty) |
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[[Leiden]], [[Netherlands]]<br>([[INGKA Holding|INGKA Holding B.V.]]) |
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| products = [[Self-assembly furniture]] |
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| hq_location_city = |
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| revenue = {{profit}} € 23.5 billion <small>(2010)</small><ref name="key figures">{{Cite news| title =Ikea| url =http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8037637/Ikea-reveals-profits-for-first-time-to-dispel-secretive-image.html | location=London| work=The Daily Telegraph| first=Louise| last=Armitstead| date=October 1, 2010}}</ref> |
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| hq_location_country = |
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| net_income = {{profit}} € 2.7 billion <small>(2010)<ref name="IKEA Annual Report">{{Cite news| title =IKEA| url =http://www.ikea.com/ms/en_US/pdf/yearly_summary/Welcome_inside_2010_update.pdf | work=IKEA | date=January 21, 2011}}</ref> |
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| num_locations = 479 (2024)<ref>{{cite web |url=https://www.ikea.com/global/en/our-business/how-we-work/#:~:text=473%20IKEA%20stores%20in%2063%20markets |title=How we work – IKEA Global }}</ref> |
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| Group_Equity = € 22.8 billion <small>(2010)</small> |
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| area_served = Worldwide |
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| num_employees = 127,000,000,000,000 <small>(2010)</small> |
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| key_people = {{Plainlist| |
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| owner = [[IKEA Family]] |
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* Jesper Brodin (Chairman and [[CEO]] of [[INGKA Holding]])<ref>{{Cite news |url=http://fortune.com/2017/05/24/ikea-new-ceo-jesper-brodin/ |title=IKEA Has a New CEO |date=24 May 2017 |work=[[Fortune (magazine)|Fortune]] |access-date=5 December 2017 |archive-date=18 June 2019 |archive-url=https://web.archive.org/web/20190618105040/http://fortune.com/2017/05/24/ikea-new-ceo-jesper-brodin/ |url-status=live }}</ref> |
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| homepage = {{URL|www.ikea.com}} |
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* Jon Abrahamsson Ring (Chairman and CEO of the [[Inter IKEA Holding]])<ref name="IKEA finalizing its biggest overhaul in decades">{{cite news|title=IKEA finalizing its biggest overhaul in decades|url=https://www.reuters.com/article/us-ikea-restructuring-idUSKCN0XC0IA|work=Reuters|access-date=19 December 2020|archive-date=18 June 2019|archive-url=https://web.archive.org/web/20190618105037/https://www.reuters.com/article/us-ikea-restructuring-idUSKCN0XC0IA|url-status=live}}</ref> |
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}} |
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| products = {{Plainlist| |
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* [[Ready-to-assemble furniture]] |
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* [[decorative art|Homeware]] |
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* [[Food]] products |
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}} |
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| homepage = {{Plainlist| |
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* {{URL|https://about.ikea.com}} |
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* {{URL|https://ingka.com}} |
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* {{URL|https://ikea.com}} (retail) |
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}} |
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}} |
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'''IKEA''' ({{IPAc-en|aɪ|'|k|iː|ə}} {{respell|eye|KEE|ə}}, {{IPA|sv|ɪˈkêːa|lang}}), is a [[Multinational corporation|multinational]] [[conglomerate (company)|conglomerate]] founded in [[Sweden]]<ref>{{Cite web |last=Si |date=2024-06-19 |title=IKEA and the flatpack revolution |url=https://sweden.se/work-business/business-in-sweden/ikea-and-the-flatpack-revolution |access-date=2024-12-17 |website=sweden.se |language=en-GB}}</ref><ref>{{Cite web |last=Ciment |first=Shoshy |title=Here's what the first Ikea store ever looked like when it opened in Sweden more than 60 years ago |url=https://www.businessinsider.com/ikea-first-store-history-in-sweden-in-1958-2019-9 |access-date=2024-12-17 |website=Business Insider |language=en-US}}</ref> that designs and sells {{vanchor|[[ready-to-assemble furniture]]|FURNITURE}}, kitchen appliances, decoration, home accessories, and various other goods and home services. IKEA is owned and operated by a series of [[not-for-profit]] and [[for-profit]] corporations collectively known and managed as '''Inter IKEA Group''' and '''Ingka Group'''.<ref>{{Cite web |title=Meet the Inter IKEA Group management team |url=https://www.inter.ikea.com/en/this-is-inter-ikea-group/management-structure |access-date=2024-12-17 |website=www.inter.ikea.com |language=en}}</ref> The IKEA brand itself is owned and managed by '''Inter IKEA Systems B.V.''', a company incorporated in the [[Netherlands]].<ref>{{Cite web |title=Inter IKEA Systems B.V. |url=https://opencorporates.com/companies/nl/27232886 |access-date=2023-09-02 |website=[[OpenCorporates]]}}</ref><ref>{{Cite web |date=2020-09-10 |title=Privacy statement for inter.ikea.com |url=https://www.inter.ikea.com/en/ikea-policies/privacy-statement |access-date=2023-09-02 |website=inter.ikea.com}}</ref> |
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'''IKEA''' is a privately held, <!-- Not a [[Sweden|Swedish]] company. It is founded in Sweden, but is today a Dutch company. Please, read the whole introduction. --> international home products company that designs and sells [[ready-to-assemble furniture]] such as beds and [[desks]], appliances and home accessories. The company is the world's largest furniture retailer.<ref>Reuters (January 8, 2008) [http://www.reuters.com/article/consumerproducts-SP/idUSL0861625720080108 IKEA mulls joint venture with Bosnia furniture maker].</ref> Founded in 1943 by 17-year-old [[Ingvar Kamprad]] in [[Sweden]], the company is named as an acronym comprising the initials of the founder's name ('''I'''ngvar '''K'''amprad), the farm where he grew up ('''E'''lmtaryd), and his home parish ([[Agunnaryd|'''A'''gunnaryd]], in [[Småland]], South Sweden).<ref>"Ingvar Kamprad and IKEA". Harvard Business School Publishing, Boston, MA, 02163. 1996</ref> |
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IKEA was started in 1943 by [[Ingvar Kamprad]], and has been the world's largest [[furniture]] retailer since 2008.<ref name=":3">{{cite web |title=Topic: Ikea |url=https://www.statista.com/topics/1961/ikea/ |url-status=live |archive-url=https://web.archive.org/web/20140616021255/https://www.statista.com/topics/1961/ikea/ |archive-date=16 June 2014 |access-date=14 January 2017 |website=statista.com}}</ref><ref>{{Cite news |last=Loeb |first=Walter |title=IKEA Is A World-Wide Wonder |url=https://www.forbes.com/sites/walterloeb/2012/12/05/ikea-is-a-world-wide-wonder/ |url-status=live |archive-url=https://web.archive.org/web/20201122035710/https://www.forbes.com/sites/walterloeb/2012/12/05/ikea-is-a-world-wide-wonder/#37fcbb136f42 |archive-date=22 November 2020 |access-date=14 January 2017 |newspaper=Forbes}}</ref><ref>{{Cite news |title=How IKEA creator Ingvar Kamprad built the world's largest furniture retailer – and a $39{{nbsp}}billion fortune |url=http://www.businessinsider.com/ingvar-kamprad-10th-richest-2016-1 |url-status=live |archive-url=https://web.archive.org/web/20200811004213/https://www.businessinsider.com/ingvar-kamprad-10th-richest-2016-1 |archive-date=11 August 2020 |access-date=14 January 2017 |newspaper=Business Insider}}</ref><ref>{{cite news |last=Zuvela |first=Maja |date=8 January 2008 |title=IKEA mulls joint venture with Bosnia furniture maker |url=https://www.reuters.com/article/2008/01/08/idUSL0861625720080108 |url-status=dead |archive-url=https://web.archive.org/web/20151031040018/http://www.reuters.com/article/2008/01/08/idUSL0861625720080108 |archive-date=31 October 2015 |access-date=24 July 2013 |work=Reuters}}</ref><ref>{{cite web |title=Profiles of 50 major furniture retailers worldwide – Market Research – Report by CSIL |url=https://www.worldfurnitureonline.com/research-market/profiles-50-major-furniture-retailers-worldwide-0058620.html |url-status=live |archive-url=https://web.archive.org/web/20141010222233/http://www.worldfurnitureonline.com/research-market/profiles-50-major-furniture-retailers-worldwide-0058620.html |archive-date=10 October 2014 |access-date=14 January 2017 |website=worldfurnitureonline.com |publisher=CSILMilano Research and Studies}}</ref> The brand name is an [[acronym]] of founder Ingvar Kamprad's initials; Elmtaryd, the family farm where Kamprad was born; and the nearby village of [[Agunnaryd]], Kamprad's hometown in [[Småland]], southern [[Sweden]].<ref>{{cite news |date=10 August 2018 |title=The story behind Ikea's 'quirky' product names |url=https://timesofindia.indiatimes.com/business/india-business/the-story-behind-ikeas-quirky-product-names/articleshow/65349884.cms |url-status=live |archive-url=https://web.archive.org/web/20201109011241/https://timesofindia.indiatimes.com/business/india-business/the-story-behind-ikeas-quirky-product-names/articleshow/65349884.cms |archive-date=9 November 2020 |access-date=10 August 2018 |website=[[The Times of India]]}}</ref><ref>"Ingvar Kamprad and IKEA". Harvard Business School Publishing, Boston, MA, 02163. 1996</ref> |
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The firm is known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an of average two to three per cent over the decade to 2010, while continuing its global expansion.<ref>[http://www.thomaswhite.com/explore-the-world/global-players/ingvar-kamprad.aspx Global Players: Ingvar Kamprad, Founder and Chief Advisor, IKEA]</ref> |
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The group is primarily known for its [[Modern furniture|modernist]] furniture designs, simple approach to [[interior design]], and its immersive shopping concept, based around decorated room settings within [[big-box store]]s, where customers can interact with products onsite. In addition, the firm is known for its attention to cost control and continuous product development, notably, the [[ready-to-assemble furniture|ready-to-assemble]] model of furniture sales, and other elements which have allowed IKEA to establish lower prices than its competitors. |
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The groups of companies that form IKEA are all controlled by INGKA Holding B.V., a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch [[Foundation (charity)|foundation]].<ref>{{cite web|url=http://www.ikea.com/us/en/customerservices/faq#faqAnswers3-17 |title=FAQ |publisher=IKEA.com |date=February 11, 2008 |accessdate=December 26, 2010}}</ref> The IKEA trademark and concept is controlled by a series of corporations that can be traced to the [[Netherlands Antilles]]<ref name="Economist, May 11, 2006">{{Cite news|url=http://www.economist.com/business/displaystory.cfm?story_id=6919139|title=IKEA: Flat-pack accounting|work=[[The Economist]]|date= May 11, 2006|accessdate=June 10, 2009}}</ref> and to the [[Interogo Foundation]] in Liechtenstein.<ref name="SVT, January 26, 2011">{{Cite news|url=http://svt.se/2.150075/1.2304474/granskningen_av_ikea_ett_brett_samarbetsprojekt |title=Granskningen av Ikea ett brett samarbetsprojekt |publisher=SVT.se |date= January 26, 2011|accessdate=January 28, 2011}}</ref> |
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{{As of|2024|September}}, there are 473 IKEA stores operating in 63 countries<ref name=":12">{{cite web |title=Update from IKEA CEO |url=https://www.linkedin.com/posts/jonabrahamssonring_today-we-share-the-total-ikea-retail-sales-activity-7250097802498703361-hDWQ?utm_source=share&utm_medium=member_desktop |url-status=live |archive-url=https://web.archive.org/web/20211020195723/https://www.ikea.com/fr/fr/this-is-ikea/about-us/ikea-faits-et-chiffres-2018-pubfd3597c1#:~:text=422%20magasins%20IKEA%20sur%20plus%20de%2050%20march%C3%A9s/ |archive-date=20 October 2021 |access-date=20 October 2021}}</ref> and in [[fiscal year]] 2024, €45.1{{nbsp}}billion worth of IKEA goods were sold.<ref>{{Cite news |last1= |first1= |last2= |first2= |date= |title=FY24 IKEA Stats from the CEO |url=https://www.linkedin.com/posts/jonabrahamssonring_today-we-share-the-total-ikea-retail-sales-activity-7250097802498703361-hDWQ?utm_source=share&utm_medium=member_desktop |url-status=live |archive-url=https://web.archive.org/web/20181223025923/https://www.reuters.com/article/us-ikea-sales/new-stores-and-online-growth-help-ikea-fend-off-rivals-idUSKCN1MK0YM |archive-date=23 December 2018 |access-date=23 December 2018 |agency=Reuters}}</ref> For multiple reasons, including lowering taxes payable, IKEA uses a complicated corporate structure in which IKEA stores are operated under [[franchising|franchise]] from [[Inter IKEA Systems]] B.V. which handles branding, design, manufacturing, and supply. Another part of the IKEA group, Ingka Group, operates the majority of IKEA stores as a franchisee and pays royalties to Inter IKEA Systems B.V.<ref name=":6">{{cite web|date=24 August 2018|title=Who Owns IKEA? IKEA Business Model In A Nutshell|url=https://fourweekmba.com/who-owns-ikea/|access-date=19 November 2020|website=FourWeekMBA|archive-date=25 October 2020|archive-url=https://web.archive.org/web/20201025201951/https://fourweekmba.com/who-owns-ikea/|url-status=live}}</ref><ref name="greens-efa.eu">[http://www.greens-efa.eu/legacy/fileadmin/dam/Documents/Letters/Greens-EFA_letter_to_Commissioners_Vestager_and_Moscovici-IKEA_report_01.pdf Greens-EFA letter to Commissioners Vestager and Moscovici – IKEA report, 12 February 2016] {{Webarchive|url=https://web.archive.org/web/20170116203337/http://www.greens-efa.eu/legacy/fileadmin/dam/Documents/Letters/Greens-EFA_letter_to_Commissioners_Vestager_and_Moscovici-IKEA_report_01.pdf |date=16 January 2017 }} Retrieved 16 February 2016.</ref> Some IKEA stores are also operated by independent franchises.<ref>{{cite web|title=About the IKEA group – IKEA|url=https://www.ikea.com/ms/fr_MA/about_ikea/facts_and_figures/about_ikea_group/index.html|access-date=19 November 2020|website=ikea.com|archive-date=4 February 2018|archive-url=https://web.archive.org/web/20180204161217/http://www.ikea.com/ms/fr_MA/about_ikea/facts_and_figures/about_ikea_group/index.html|url-status=dead}}</ref> The IKEA website contains about 12,000 products and there were over 4.6{{nbsp}}billion visitors to IKEA's websites in FY2024. |
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INGKA Holding B.V. owns the industrial group Swedwood, which [[outsourcing|sources]] the manufacturing of IKEA furniture, the sales companies that run IKEA stores, as well as purchasing and supply functions, and IKEA of Sweden, which is responsible for the design and development of products in the IKEA range. INGKA Holding B.V. is wholly owned by [[Stichting INGKA Foundation]], which is a non-profit [[Foundation (nonprofit organization)#Netherlands|foundation]] registered in [[Leiden]], Netherlands. The European logistics centre is located in [[Dortmund]], Germany, and the Asian logistics centre is located in Singapore. |
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==History== |
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Inter IKEA Systems B.V. in [[Delft]], also in the Netherlands, owns the IKEA concept and trademark, and there is a franchising agreement with every IKEA store in the world. The INGKA Group (not to be confused with INGKA Holding B.V.) is the biggest franchisee of Inter IKEA Systems B.V. Inter IKEA Systems B.V. is not owned by INGKA Holding B.V., but by Inter IKEA Holding S.A. registered in [[Luxembourg]],<ref name="Economist, May 11, 2006" /> which in turn is controlled by the [[Interogo Foundation]] in Liechtenstein. Ingvar Kamprad has confirmed that this foundation is controlled by him and his family.<ref name="SVT.se, January 26, 2011">{{Cite news|url=http://svt.se/2.150075/1.2308083/ingvar_kamprad_bekraftar_stiftelsen_i_mejl_till_tt |title=Ingvar Kamprad bekräftar stiftelsen i mejl till TT |publisher=SVT.se |date= January 26, 2011|accessdate=January 28, 2011}}</ref> The company which was originated in Småland, Sweden, distributes its products through its retail outlets. As of October 2011, IKEA has 332 stores in thirty-eight countries. In fiscal year 2010, it sold $23.1 billion worth of goods, a 7.7 percent increase over 2009.<ref name=TNY>{{cite journal|last=Collins|first=Lauren|title=House Perfect|url=http://www.newyorker.com/reporting/2011/10/03/111003fa_fact_collins|accessdate=9 October 2011|journal=[[The New Yorker]]|date=October 3, 2011}}</ref> On February 17, 2011, IKEA announced its plans for a wind farm in Dalarna County, Sweden, furthering the furniture giant's goal of running on 100 percent renewable energy.<ref>{{cite web|url= http://news.cnet.com/8301-11128_3-20032930-54.html?part=rss&subj=news&tag=2547-1_3-0-20 |title=(IKEA building its own personal wind farm) |publisher=CNET |date=February 17, 2011 |accessdate=February 17, 2011}}</ref> |
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{{See also|#Alternative store designs|#Ventures beyond furniture, homeware and Swedish food}} |
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[[File:Ikea Kungen 1965a.jpg|thumb|upright|IKEA founder [[Ingvar Kamprad]] (right) shakes hands with Hans Ax, IKEA's first store manager, in 1965.]] |
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[[File:Map of IKEA stores.svg|thumb|300x300px|Map of countries with IKEA stores |
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<br />Legend: |
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{{legend|#006AA7|Current market locations}} |
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{{legend|#FECC00|Future market locations}} |
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{{legend|#c50b1e|Former market locations}} |
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{{legend|#C0C0C0|No current or planned market locations}}]] |
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[[File:Bay Area City Pasay 09.jpg|thumb|The world's largest IKEA store is located in Pasay, Metro Manila, Philippines]] |
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In 1943, then-17-year-old [[Ingvar Kamprad]] founded IKEA as a mail-order sales business, and began to resell furniture five years later.<ref name="TNY">{{Cite magazine|last=Collins|first=Lauren|title=House Perfect|url=https://www.newyorker.com/magazine/2011/10/03/house-perfect|access-date=8 September 2021|magazine=[[The New Yorker]]|date=26 September 2011| archive-url=https://web.archive.org/web/20210908155337/https://www.newyorker.com/magazine/2011/10/03/house-perfect|archive-date=8 September 2021|url-status=live}}</ref> The first store was opened in [[Älmhult]], [[Småland]], in 1958, under the name Möbel-IKÉA (Möbel means "furniture" in Swedish). The name IKEA is an acronym that stands for Ingvar Kamprad Elmtaryd Agunnaryd. The acronym is composed of the initials of the founder's name as well as Elmtaryd, which is the farm on which he grew up, and Agunnaryd, which is the village close to Elmtaryd.<ref>{{Cite news |title=About IKEA – Our heritage |url=https://www.ikea.com/us/en/this-is-ikea/about-us/our-heritage-pubde78e100#:~:text=Did%20you%20know?,%22 |access-date=2024-11-01 |website=www.ikea.com |language=en-US}}</ref> The first stores outside Sweden were opened in [[Norway]] (1963) and [[Denmark]] (1969).<ref name=":2">{{cite web|url=https://www.businessinsider.com/ikea-first-store-history-in-sweden-in-1958-2019-9|title=Here's what the first Ikea store ever looked like when it opened in Sweden more than 60 years ago|last=Ciment|first=Shoshy|website=Business Insider|access-date=27 April 2020|archive-date=11 September 2019|archive-url=https://web.archive.org/web/20190911212415/https://www.businessinsider.com/ikea-first-store-history-in-sweden-in-1958-2019-9|url-status=live}}</ref> The stores spread to other parts of Europe in the 1970s, with the first store outside [[Scandinavia]] opening in [[Switzerland]] (1973), followed by [[West Germany]] (1974),<ref name=":2" /> [[Japan]] (1974), [[Australia]], [[Hong Kong]] (1975), [[Canada]] (1976),<ref>{{cite news |title=IKEA GRAND OPENING |work=[[The Chronicle Herald]] |date=14 July 1976 |pages=24–25}}</ref> [[Singapore]] and the [[Netherlands]] (1978).<ref name=":4">{{Cite book|last=Siegfried|first=Patrick|url=https://books.google.com/books?id=8gV5DwAAQBAJ&q=ikea+opens+in+Hong+Kong+1975&pg=PA228|title=Business Cases: Internationalisation Strategies in Global Player Companies|date=1 October 2014|publisher=Akademische Verlagsgemeinschaft München|isbn=978-3-96091-353-5|access-date=12 October 2020|archive-date=21 April 2023|archive-url=https://web.archive.org/web/20230421205335/https://books.google.com/books?id=8gV5DwAAQBAJ&q=ikea+opens+in+Hong+Kong+1975&pg=PA228|url-status=live}}</ref> IKEA further expanded in the 1980s, opening stores in countries such as [[France]] and [[Spain]] (1981), [[Belgium]] (1984),<ref>{{cite web|url=http://www.standaard.be/cnt/dmf20150910_01859438|title=Ikea blijft groeien|website=De Standaard|date=10 September 2015 |access-date=7 April 2016|archive-date=19 April 2016|archive-url=https://web.archive.org/web/20160419093831/http://www.standaard.be/cnt/dmf20150910_01859438|url-status=live}}</ref> the [[United States]] (1985),<ref>{{cite news |last=Gruson |first=Lindsey |date=22 March 1986 |title=IKEA Venture in U.S. a Hit |page=35 |url=https://www.nytimes.com/1986/03/22/business/ikea-venture-in-us-a-hit.html |work=[[The New York Times]] |access-date=19 July 2024}}</ref> the [[United Kingdom]] (1987),<ref>{{Cite news|url=https://www.theguardian.com/business/2002/jun/01/homesandgardens.shopping|title=Democratic by design|last=Finch|first=Julia|date=31 May 2002|newspaper=The Guardian|issn=0261-3077|access-date=7 April 2016|archive-date=2 August 2020|archive-url=https://web.archive.org/web/20200802030932/https://www.theguardian.com/business/2002/jun/01/homesandgardens.shopping|url-status=live}}</ref> and Italy (1989).<ref>{{cite web|url=http://www.ikea.com/ms/en_MY/about_ikea/the_ikea_way/history/1980.html|title=1980s – IKEA|website=ikea.com|access-date=7 April 2016|archive-date=30 April 2021|archive-url=https://web.archive.org/web/20210430171023/https://www.ikea.com/ms/en_MY/about_ikea/the_ikea_way/history/1980.html|url-status=dead}}</ref><ref name=":4" /> [[Germany]] and the United States, with 55 stores (three in Puerto Rico in latter) each, are the company's biggest markets. |
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The IKEA website contains about 12,000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors to the IKEA websites in the year from September 2007 to September 2008.<ref>Inter IKEA Systems B.V. November 2008</ref> The company is keen to show leadership in adopting more [[environmentally friendly]] manufacturing processes. {{Dubious|date=September 2010}} IKEA is the world's third-largest consumer of wood, behind [[The Home Depot]] and [[Lowe's]].<ref name=TNY /> |
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IKEA entered [[Latin America]] in February 2010, opening in the [[Dominican Republic]].<ref>{{Cite book|last=Publishing|first=Bloomsbury|url=https://books.google.com/books?id=EtpxIvlFpTsC&q=The+first+IKEA+store+in+Latin+America+in+Santo+Domingo%2C+Dominican+Republic&pg=PT3004|title=Business: The Ultimate Resource|date=6 June 2011|publisher=A&C Black|isbn=978-1-4081-5646-9|access-date=15 November 2020|archive-date=21 April 2023|archive-url=https://web.archive.org/web/20230421205446/https://books.google.com/books?id=EtpxIvlFpTsC&q=The+first+IKEA+store+in+Latin+America+in+Santo+Domingo%2C+Dominican+Republic&pg=PT3004|url-status=live}}</ref> As for the region's largest markets, on 8 April 2021, a store was opened in [[Mexico City]]. |
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== IKEA stores == |
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In August 2018, IKEA opened its first store in [[India]], in [[Hyderabad]].<ref>{{cite news |url=https://economictimes.indiatimes.com/industry/services/retail/ikea-opens-its-first-india-store-tomorrow-heres-what-it-offers/articleshow/65319086.cms?from=mdr |title=IKEA is now open for business in India: Here's what it offers |work=The Economic Times |date=10 August 2018 |access-date=30 December 2020 |archive-date=21 April 2023 |archive-url=https://web.archive.org/web/20230421205336/https://economictimes.indiatimes.com/industry/services/retail/ikea-opens-its-first-india-store-tomorrow-heres-what-it-offers/articleshow/65319086.cms?from=mdr |url-status=live }}</ref><ref>{{cite news |url=https://www.ikea.com/in/en/this-is-ikea/newsroom/ikea-retail-india-moves-the-opening-date-to-9th-of-august-2018-pub3e70ca2c |title=IKEA Retail India moves the opening date to 9th of August, 2018 |publisher=IKEA |access-date=30 December 2020 |archive-date=26 January 2022 |archive-url=https://web.archive.org/web/20220126060153/https://www.ikea.com/in/en/this-is-ikea/newsroom/ikea-retail-india-moves-the-opening-date-to-9th-of-august-2018-pub3e70ca2c |url-status=live }}</ref> There are now stores in Bengaluru and Mumbai.<ref>{{Cite web |title=IKEA Stores - Furniture & Home Furnishing Store |url=https://www.ikea.com/in/en/stores/ |access-date=2023-04-26 |website=ikea.com}}</ref> |
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In November 2021, IKEA opened its largest store in the world, measuring {{convert|65000|sqm|sqft}},<ref>{{Cite news |url=https://news.abs-cbn.com/business/multimedia/slideshow/11/25/21/look-ikea-opens-worlds-largest-outlet-in-pasay |title="Ikea Opens World's Largest Outlet in Pasay", ABS-CBN News, November 25 2021 |newspaper=Abs-CBN News |access-date=13 December 2021 |archive-date=13 December 2021 |archive-url=https://web.archive.org/web/20211213184419/https://news.abs-cbn.com/business/multimedia/slideshow/11/25/21/look-ikea-opens-worlds-largest-outlet-in-pasay |url-status=live }}</ref> in the [[Philippines]] at the [[SM Mall of Asia|Mall of Asia Complex]] in [[Pasay|Pasay City]].<ref>{{cite web|title=World's biggest IKEA store opens in PH on Nov. 25|url=https://www.cnnphilippines.com/lifestyle/2021/11/12/IKEA-Philippines-physical-store-opening.html|access-date=25 November 2021|website=[[CNN Philippines]]|archive-date=25 November 2021|archive-url=https://web.archive.org/web/20211125021220/https://www.cnnphilippines.com/lifestyle/2021/11/12/IKEA-Philippines-physical-store-opening.html|url-status=dead}}</ref><ref>{{cite web |last1=Venzon |first1=Cliff |title=Ikea opens first outlet in Philippines – its largest globally |url=https://asia.nikkei.com/Business/Retail/Ikea-opens-first-outlet-in-Philippines-its-largest-globally |website=[[Nikkei Asia]] |access-date=25 November 2021|date=25 November 2021 |archive-date=25 November 2021 |archive-url=https://web.archive.org/web/20211125060431/https://asia.nikkei.com/Business/Retail/Ikea-opens-first-outlet-in-Philippines-its-largest-globally |url-status=live }}</ref><ref>{{cite web |last1=Fenol |first1=Jessica |title=IKEA Pasay City opens to public on Nov. 25 with 'no booking, no shopping' policy |url=https://news.abs-cbn.com/business/11/25/21/ikea-in-ph-opens-to-public-with-no-booking-no-shopping-policy |website=[[ABS-CBN News]] |access-date=25 November 2021|date=25 November 2021 |archive-date=7 March 2022 |archive-url=https://web.archive.org/web/20220307210038/https://news.abs-cbn.com/business/11/25/21/ikea-in-ph-opens-to-public-with-no-booking-no-shopping-policy |url-status=live }}</ref> |
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In March 2022, IKEA announced the closing of all 17 stores in [[Russia]], resulting from the [[2022 Russian invasion of Ukraine]]. Because of the ongoing war and unimproved situation in Russia, IKEA said on 15 June that it would sell factories, close offices and reduce its workforce.<ref>{{Cite news |last=Ringstrom |first=Anna |date=15 June 2022 |title=IKEA puts Russian factories up for sale, plans job cuts|work=Reuters |url=https://www.reuters.com/business/retail-consumer/ikea-further-scale-down-operations-russia-2022-06-15/ |access-date=16 June 2022 |archive-date=16 June 2022 |archive-url=https://web.archive.org/web/20220616002258/https://www.reuters.com/business/retail-consumer/ikea-further-scale-down-operations-russia-2022-06-15/ |url-status=live }}</ref> Later it became known that IKEA does not plan to sell its business, but expected to return to Russia within two years.<ref>{{Cite web|url=https://tass.ru/ekonomika/15552677|title=Источник: IKEA не планирует продавать бизнес в России и хочет вернуться в течение двух лет|language=ru|date=24 August 2022|agency=[[TASS]]|access-date=27 August 2022|archive-date=27 August 2022|archive-url=https://web.archive.org/web/20220827220008/https://tass.ru/ekonomika/15552677|url-status=live}}</ref> By October 2022, IKEA laid off about 10,000 Russian employees.<ref>{{Cite web|url=https://www.banki.ru/news/lenta/?id=10973782|title=IKEA уволила 10 тыс. сотрудников в России|language=ru|date=13 October 2022|website=banki.ru|access-date=14 October 2022|archive-date=14 October 2022|archive-url=https://web.archive.org/web/20221014091743/https://www.banki.ru/news/lenta/?id=10973782|url-status=live}}</ref> |
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In September 2023, the {{visible anchor|MEGA}} chain of 14 supermarkets, then owned by Ingka, was bought by the Russian [[Gazprombank]].<ref>{{Cite web|url=https://www.rbc.ru/business/28/09/2023/65152bdd9a79472f909286a3|title=Газпромбанк купил торговые центры "Мега" у экс-владельца IKEA в России|date=2023-09-28|website=RBK}}</ref> |
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IKEA was hit hard by [[COVID-19]] because of lockdowns in various countries, like in the UK and Canada.<ref>{{cite web|title=Ikea to reopen 19 stores during UK lockdown|website=[[The Guardian]]|date=22 May 2020|url=https://www.theguardian.com/business/2020/may/22/ikea-reopen-stores-uk-lockdown-furniture-covid-19|access-date=18 June 2022|archive-date=18 June 2022|archive-url=https://web.archive.org/web/20220618151530/https://www.theguardian.com/business/2020/may/22/ikea-reopen-stores-uk-lockdown-furniture-covid-19|url-status=live}}</ref><ref>{{cite web|title=IKEA reopens in Ottawa during COVID-19 pandemic|date=26 May 2020|url=https://ottawa.ctvnews.ca/ikea-reopens-in-ottawa-during-covid-19-pandemic-1.4955033|access-date=18 June 2022|archive-date=6 April 2023|archive-url=https://web.archive.org/web/20230406210005/https://ottawa.ctvnews.ca/ikea-reopens-in-ottawa-during-covid-19-pandemic-1.4955033|url-status=live}}</ref> Because demand had fallen,<ref>{{cite web|title=Ikea to stop printing catalogue after 'successful career' that spanned 70 years|website=[[The Guardian]]|date=7 December 2020|url=https://www.theguardian.com/business/2020/dec/07/ikea-to-stop-printing-catalogue-after-70-years-as-customers-move-online|access-date=18 June 2022|archive-date=18 June 2022|archive-url=https://web.archive.org/web/20220618151529/https://www.theguardian.com/business/2020/dec/07/ikea-to-stop-printing-catalogue-after-70-years-as-customers-move-online|url-status=live}}</ref> its annual catalogue ceased publication after 70 years in print.<ref>{{cite web |last=Valinsky |first=Jordan |date=7 December 2020 |title=Ikea is killing off its catalog after 70 years |url=https://edition.cnn.com/2020/12/07/business/ikea-catalog/index.html |url-status=live |archive-url=https://web.archive.org/web/20220618151507/https://edition.cnn.com/2020/12/07/business/ikea-catalog/index.html |archive-date=18 June 2022 |access-date=18 June 2022 |website=[[CNN Business]]}}</ref> The prices of their products have risen significantly in 2022 because of rising costs and inflation.<ref>{{Cite news|title=Ikea is hiking its prices by nearly 10% as the supply chain crisis continues to disrupt its operations|url=https://www.businessinsider.com/ikea-hiking-prices-supply-chain-crisis-retail-furniture-2021-12|access-date=3 July 2022|archive-date=3 July 2022|archive-url=https://web.archive.org/web/20220703150932/https://www.businessinsider.com/ikea-hiking-prices-supply-chain-crisis-retail-furniture-2021-12|url-status=live}}</ref> In April 2022, IKEA has shut down one of its stores in [[Guiyang]] when sales took a significant hit from the pandemic. Because of strict [[COVID-19 pandemic in China|COVID-19 lockdowns in China]], IKEA has closed another store in [[Shanghai]] by July 2022.<ref>{{Cite web |title=Ikea Closes Shanghai's Yangpu Store as Covid Changes Retail |url=https://www.yicaiglobal.com/news/ikea-closes-shanghai-yangpu-store-as-covid-changes-retail |access-date=2024-08-23 |website=www.yicaiglobal.com |language=en}}</ref> |
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On 10 August 2022, IKEA opened its first store in [[Chile]], the first store in [[South America]]. Another store opened in [[Colombia]] in September 2023 in [[Bogotá]],<ref>{{Cite web |last=S.A.S |first=Editorial La República |title=Abrimos el Ikea más grande de América Latina para recibir a 4.800 clientes cada día |url=https://www.larepublica.co/empresas/abrimos-el-ikea-mas-grande-de-america-latina-para-recibir-4-800-clientes-al-dia-3715077 |access-date=2023-09-29 |website=Diario La República |date=28 September 2023 |language=es}}</ref> soon to be followed by a store in [[Peru]].<ref>{{cite web | url=https://elpais.com/chile/2022-08-01/ikea-elige-chile-para-su-desembarco-en-sudamerica.html | title=IKEA elige Chile para su desembarco en Sudamérica | date=August 2022 | access-date=10 August 2022 | archive-date=10 August 2022 | archive-url=https://web.archive.org/web/20220810222328/https://elpais.com/chile/2022-08-01/ikea-elige-chile-para-su-desembarco-en-sudamerica.html | url-status=live }}</ref><ref>{{cite web | url=https://www.pulzo.com/economia/ikea-colombia-cuando-abrira-su-primera-tienda-centro-comercial-PP1076672 | title=Primera tienda de Ikea en Colombia ya tiene fecha... En famoso centro comercial | date=13 September 2021 | access-date=10 August 2022 | archive-date=14 July 2022 | archive-url=https://web.archive.org/web/20220714045545/https://www.pulzo.com/economia/ikea-colombia-cuando-abrira-su-primera-tienda-centro-comercial-PP1076672 | url-status=live }}</ref><ref>{{cite web |author=IKEA Franchising |url=https://about.ikea.com/en/newsroom/2022/08/09/ikea-opens-new-store-in-santiago-chile |title=IKEA opens new store in Santiago Chile |publisher=About.ikea.com |access-date=11 August 2022 |archive-date=10 August 2022 |archive-url=https://web.archive.org/web/20220810235231/https://about.ikea.com/en/newsroom/2022/08/09/ikea-opens-new-store-in-santiago-chile |url-status=live }}</ref> |
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===First store opening in each location=== |
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{{Main|List of countries with IKEA stores}} |
{{Main|List of countries with IKEA stores}} |
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{{columns-list|colwidth=200px| |
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[[File:IKEA Store Elmhult.jpg|thumb|The first IKEA store, located in Älmhult in Sweden not far from where the founder was born.]] |
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* 1958, {{flag|Sweden}} |
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The first '''Möbel-IKÉA''' store was opened in [[Älmhult]], [[Småland]] in 1953,<ref name="TNY"/> while the first stores outside Sweden were opened in Norway (1963) and Denmark (1969). The stores spread to other parts of Europe in the 1970s, with the first store outside Scandinavia opening in Switzerland (1973), followed by Germany (1974). |
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* 1963, {{flag|Norway}} |
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* 1969, {{flag|Denmark}} |
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* 1973, {{flag|Switzerland}} |
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* 1974, {{flag|Germany}}, {{flag|Japan}}{{NoteTag|Ceased operations in 1986, re-opened in 2006}} |
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* 1975, {{flag|Australia}}, {{flag|Hong Kong}}{{NoteTag|Then [[British Hong Kong]]}} |
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* 1976, {{flag|Canada}} |
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* 1977, {{flag|Austria}} |
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* 1978, {{flag|Netherlands}}, {{flag|Singapore}} |
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* 1980, {{flag|Spain}} |
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* 1981, {{flag|France}}, {{flag|Iceland}} |
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* 1983, {{flag|Saudi Arabia}} |
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* 1984, {{flag|Belgium}}, {{flag|Kuwait}} |
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* 1985, {{flag|United States}} |
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* 1987, {{flag|United Kingdom}} |
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* 1989, {{flag|Italy}} |
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* 1990, {{flag|Hungary}}, {{flag|Poland}} |
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* 1991, {{flag|Czech Republic}},{{NoteTag|Then part of [[Czechoslovakia]]|name=Czechoslovakia}} {{flag|Serbia}},{{NoteTag|Then part of [[Yugoslavia]]}} {{flag|United Arab Emirates}} |
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* 1992, {{flag|Slovakia}}{{NoteTag|name=Czechoslovakia}} |
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* 1994, {{flag|Taiwan}} |
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* 1996, {{flag|Finland}}, {{flag|Malaysia}} |
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* 1998, {{flag|China}} |
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* 2000, {{flag|Russia}}{{NoteTag|Ceased operations in 2022<ref name="wsj-russia">{{cite web |last=Chopping |first=Dominic |date=3 March 2022 |title=IKEA Closes All 17 Stores in Russia |url=https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-03-03/card/ikea-closes-all-17-stores-in-russia-kt9QORVODutcLLSFiTfO |url-status=live |archive-url=https://web.archive.org/web/20220401075351/https://www.wsj.com/livecoverage/russia-ukraine-latest-news-2022-03-03/card/ikea-closes-all-17-stores-in-russia-kt9QORVODutcLLSFiTfO |archive-date=1 April 2022 |access-date=1 April 2022 |website=[[The Wall Street Journal]] |language=en-US}}</ref>}} |
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* 2001, {{flag|Greece}}, {{flag|Israel}} |
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* 2004, {{flag|Portugal}} |
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* 2005, {{flag|Turkey}} |
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* 2007, {{flag|Cyprus}}, {{flag|Romania}} |
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* 2008, {{flag|Ireland}} |
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* 2010, {{flag|Dominican Republic}} |
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* 2011, {{flag|Bulgaria}}, {{flag|Thailand}} |
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* 2012, {{flag|Macau}} |
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* 2013, {{flag|Lithuania}}, {{flag|Puerto Rico}}, {{flag|Egypt}}, {{flag|Qatar}} |
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* 2014, {{flag|Croatia}}, {{flag|Indonesia}}, {{flag|Jordan}}, {{flag|South Korea}} |
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* 2016, {{flag|Morocco}} |
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* 2017, {{flag|Serbia}} |
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* 2018, {{flag|Bahrain}}, {{flag|India}}, {{flag|Latvia}} |
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* 2019, {{flag|Estonia}} |
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* 2020, {{flag|Ukraine}} |
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* 2021, {{flag|Mexico}}, {{flag|Philippines}}, {{flag|Slovenia}} |
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* 2022, {{flag|Chile}}, {{flag|Oman}} |
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* 2023, {{flag|Colombia}} |
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}} |
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==Store layout== |
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Things were going so well for the company, that in 1973, the company's German executives accidentally opened a store in [[Konstanz]] when they had meant to open one in [[Koblenz]].<ref name="TNY"/> Later that decade, stores opened in other parts of the world, including Japan (1974), Australia and Hong Kong (1975), Canada (1976), and Singapore (1978). IKEA further expanded in the 1980s, opening stores in France (1981), Spain (1981), Belgium (1984), the United States (1985), the United Kingdom (1987), and Italy (1989), among other areas. The company expanded into more countries in the 1990s and 2000s. Germany, with 44 stores, is IKEA's biggest market, followed by the United States, with 37. At the end of 2009 financial year, the IKEA group had 267 stores in 25 countries.<ref>{{cite web|url=http://www.ikea.com/ms/en_GB/about_ikea/facts_and_figures/index.html |title= IKEA facts and Figures |publisher= ikea.com |date= accessdate=April 2010}}</ref> The first IKEA store in Latin America opened on February 17, 2010 in [[Santo Domingo]], Dominican Republic.<ref>{{cite web|url=http://www.ikeasantodomingo.com/ |title=Bienvenido a IKEA Santo Domingo |publisher=ikeasantodomingo.com |date= |accessdate=June 10, 2009}}</ref><ref>{{cite web|url=http://www.diariolibre.com/noticias_det.php?id=232067 |title=Ikea abrirá el 17 de febrero; presentan catálogo de artículos |publisher=DiarioLibre.com |date= |accessdate=December 26, 2010}}</ref> However, the company has thus far not shown much of a presence in the [[Developing country|developing countries]]. |
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[[File:IKEA furniture display in HK Homesquare 2018.JPG|thumb|Interior of an IKEA store in Hong Kong]] |
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[[File:IKEA Anderlecht self-serve warehouse (DSCF3734).jpg|thumb|The self-service warehouse area]] |
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===Traditional store layout=== |
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The world's five largest IKEA stores are: |
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IKEA stores are typically blue buildings with yellow accents<ref>{{cite news|title=The IKEA logo – history and design|url=https://www.ikea.com/ph/en/this-is-ikea/about-us/the-ikea-logo-history-and-design-pub55d85f50|access-date=12 December 2021|website=ikea.com|archive-date=31 July 2021|archive-url=https://web.archive.org/web/20210731181736/https://www.ikea.com/ph/en/this-is-ikea/about-us/the-ikea-logo-history-and-design-pub55d85f50|url-status=live}}</ref> — Sweden's [[national colours]]. They are often designed in a one-way layout, leading customers counter-clockwise along what IKEA calls "the long natural way" designed to encourage the customer to see the store in its entirety (as opposed to a traditional retail store, which allows a customer to go directly to the section where the desired goods and services are displayed). There are often shortcuts to other parts of the showroom.<ref>{{cite web |title=The Nudge – How IKEA's Store Layout Design Influences Your Spending – Thoughts on Wayfinding |url=https://wp.nyu.edu/thoughtsonwayfinding/2017/11/19/the-nudge-how-ikeas-store-layout-design-influences-your-spending/ |url-status=unfit |archive-url=https://web.archive.org/web/20201111203357/https://wp.nyu.edu/thoughtsonwayfinding/2017/11/19/the-nudge-how-ikeas-store-layout-design-influences-your-spending/ |archive-date=11 November 2020 |access-date=29 October 2019}}</ref> |
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# Stockholm [[Kungens Kurva]], Sweden: 55,200 m<sup>2</sup> |
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# [[Shanghai]], China: 49,400 m<sup>2</sup> |
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# [[Shenyang]], China: 47,000 m<sup>2</sup> |
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# [[Tianjin]], China: 45,736 m<sup>2</sup> |
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# [[Berlin]] [[Lichtenberg]], Germany: 45,000 m<sup>2</sup> |
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The sequence first involves going through the furniture showrooms making note of selected items. The showroom usually consists of simulated room settings where customers can see the actual furniture in use, e.g.: a living-room with a sofa, a TV set, a bookcase and a dining table, accessorized with plants, cushions, rugs, lamps, plates, glasses and cutlery. Showroom sections are usually displayed in the order of the rooms of a house: living rooms, dining rooms, kitchens, bedrooms, kids' rooms. The customer then collects a shopping cart and proceeds to an open-shelf "Market Hall" warehouse for smaller items. Lastly, the [[self-service]] furniture warehouse stores the showroom products in [[flat pack]] form for the customer to collect the ones previously noted. Sometimes, they are directed to collect products from an external warehouse on the same site or at a site nearby after purchase. Finally, customers pay for their products at a cash register. Not all furniture is stocked at the store level, such as particular sofa colours needing to be shipped from a warehouse to the customer's home or the store. |
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The biggest store in the Southern Hemisphere is in [[Tempe, New South Wales|Tempe]], Sydney, Australia: 39000 m<sup>2</sup><ref>http://www.dynamicbusiness.com.au/news/ikea-tempe-opens-for-business-03112011.html</ref> |
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[[File:Ikea, Ottawa, Ontario (29983462651).jpg|thumb|IKEA store in Ottawa, Ontario, Canada]] |
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IKEA opened its largest store in Canada on December 7, 2011. Located in [[Ottawa, Ontario|Ottawa]], the store has an area of 39670 m<sup>2</sup><ref>http://www.newswire.ca/en/story/889717/ikea-canada-celebrates-the-grand-opening-of-new-store-in-ottawa</ref> |
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Most stores follow the layout of having the showroom upstairs with the marketplace and self-service warehouse downstairs. Some stores are single level, while others have separate warehouses to allow more stock to be kept on-site. Single-level stores are found predominantly in areas where the cost of land would be less than the cost of building a 2-level store. Some stores have dual-level warehouses with machine-controlled silos to allow large quantities of stock to be accessed throughout the selling day. |
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In 2012, IKEA plans to open its first shopping center in [[Croatia]] that will be one of the 5 biggest in Europe and among 10 biggest IKEA stores in the world.<ref name="iicg.hr">http://www.iicg.hr/en-gb/shopping-centres/zagreb-east</ref><ref name="iicg.hr"/><ref>http://danas.net.hr/novac/page/2011/04/04/0624006.html</ref><ref>http://www.youtube.com/watch?v=rQ3d1gzEc4w</ref> in 2013, IKEA plans to open first shopping center in [[Vilnius]], [[Lithuania]] that will be the biggest furniture-selling mall in [[Baltic states]].<ref>[http://verslas.delfi.lt/business/ikea-vilniuje-bus-2013-m.d?id=52875889 Lithuania]</ref> |
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[[File:IKEA Damansara Market Hall (As-Is section) 20221125 102122.jpg|thumb|As-is area at IKEA Damansara, Malaysia]] |
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=== Layout === |
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Most IKEA stores offer an "as-is" or "bargain corner" (recently rebranded as "re-shop and re-use") area at the end of the warehouse, just before the cash registers. Returned, damaged, and formerly showcased products are displayed here and sold with a significant discount. |
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[[File:IKEA Singapore.jpg|thumb|An IKEA Store along Alexandra Road in [[Queenstown, Singapore|Queenstown]], Singapore.]] |
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[[File:IKEA Frisco TX.JPG|thumb||IKEA store in [[Frisco, Texas]], USA.]] |
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[[File:Ikea Southampton.jpg|thumb|IKEA, [[Southampton]], England, UK.]] |
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[[File:IKEA Wembley Bargain Corner.jpg|thumb|The Bargain Corner at a branch of IKEA in Wembley, London.]] |
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Older IKEA stores are usually very large blue buildings with yellow accents (also Sweden's national colors) and few windows. They are often designed in a "one-way" layout, leading customers along "the long natural way" designed to encourage the customer to see the store in its entirety (as opposed to a traditional retail store, which allows a consumer to go directly to the section where the goods and services needed are displayed). However, there are often shortcuts to other parts of the showroom. Newer IKEA stores, like the one in [[Mönchengladbach]], Germany, make more use of glass, both for aesthetics and functionality. Skylights are also now common in the self-serve warehouses; natural lighting reduces energy costs, improves worker morale and gives a better impression of the product. |
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In March 2022, IKEA swiftly exited the Russian market, due to [[Russia's invasion of Ukraine]],<ref>{{Cite web |title=IKEA takes the next step to scale down in Russia and Belarus - IKEA Global |url=https://www.ikea.com/global/en/newsroom/corporate/ikea-takes-the-next-step-to-scale-down-in-russia-and-belarus-220615/ |access-date=2024-05-05 |website=IKEA}}</ref> leading to a surplus of items that were earmarked for the Russian market in IKEA's warehouses. To get rid of these items quickly, IKEA has been reselling these in a number of non-Russian IKEA stores near the bargain corner at a discount.<ref>{{Citation |last=Hullian111 |title=English: Stock intended for Russian IKEA being sold at Sheffield IKEA's Circular Hub, Sheffield, South Yorkshire, England. This stock was withdrawn from sale and exported to the United Kingdom as a result of IKEA's withdrawal from Russia and Belarus due to the 2022 Russian invasion of Ukraine. |date=2023-09-07 |url=https://commons.wikimedia.org/wiki/File:IKEA_Sheffield_Russian_Stock_Clearance_09.jpg |access-date=2024-05-05}}</ref> |
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The sequence first involves going through furniture showrooms making note of selected items. The customer then collects a shopping cart and proceeds to an open-shelf "Market Hall" warehouse for smaller items, then visiting the "Self Serve" furniture warehouse to collect previously noted showroom products in [[flat pack]] form. Sometimes, they are directed to collect products from an external warehouse on the same site or at a site nearby. Finally, customers pay for their products at a cash register. |
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===Alternative smaller store formats=== |
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Today, most stores follow the same layout of having the showroom upstairs with the marketplace and warehouse downstairs. Some stores are single level, while others have separate warehouses to allow more stock to be kept on-site. However, this occasionally results in challenges in finding the items, as well as a perception of having to queue in line twice. Single-level stores are found predominantly in areas where the cost of land would be less than the cost of building a 2-level store, such as the [[Saarlouis]], Germany and [[Haparanda]], Sweden locations. Some stores have dual-level warehouses with machine-controlled silos to allow large quantities of stock to be accessed throughout the selling day. |
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The majority of IKEA stores are located outside of city centres, primarily because of land cost and traffic access. Smaller store formats have been unsuccessfully tested in the past (the "midi" concept in the early 1990s, which was tested in [[Ottawa]] and [[Heerlen]] with {{convert|9,300|m2|ft2|abbr=on}}, or a "boutique" shop in [[Manhattan]]). |
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====New formats for full-size stores==== |
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Most IKEA stores offer an "as-is" area at the end of the warehouse, just before the cash registers. Returned, damaged and formerly showcased products are displayed here and sold with a significant discount, but also with a "no-returns" policy. Most IKEA stores communicate the IKEA policy on environmental issues in the "as-is." In the United Kingdom, this is referred to as "Bargain Corner." |
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A new format for a full-size, city centre store was introduced with the opening of the [[Manchester]] store, situated in [[Ashton-under-Lyne]] in 2006. Another store, in [[Coventry]], opened in December 2007. The store had seven floors and a different flow from other IKEA stores; however, it closed down in 2020 due to the site being deemed unsuitable for future business.<ref>{{cite web|last=Layton|first=Josh|date=28 May 2020|title=Ikea breaks silence on future of Coventry site|url=https://www.coventrytelegraph.net/news/ikea-coventry-closed-store-site-18317333|access-date=4 August 2020|website=CoventryLive|archive-date=29 June 2020|archive-url=https://web.archive.org/web/20200629042442/https://www.coventrytelegraph.net/news/ikea-coventry-closed-store-site-18317333|url-status=live}}</ref> IKEA's [[Southampton]] store that opened in February 2009 is also in the city centre and built in an urban style similar to the Coventry store. IKEA built these stores in response to UK government restrictions on large retail establishment outside city centres.<ref>{{cite web|url=http://www.ikea.com/ms/en_GB/about_ikea/press_room/press_release/national/southampton_opening.html|title=IKEA – press room – press release|archive-url=https://web.archive.org/web/20160303231313/http://www.ikea.com/ms/en_GB/about_ikea/press_room/press_release/national/southampton_opening.html|access-date=2 May 2015|archive-date=3 March 2016}}</ref> |
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====Adaptation to Japanese market==== |
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In Hong Kong, where shop space is limited and costly, IKEA has opened three outlets across the city, most of which have the one-way layout. They are part of shopping malls, and while being tiny compared to common store design, are huge by Hong Kong standards. An exception is the newest outlet in [[Telford Plaza]], where the three independent floors can be accessed freely from each. However, following IKEA tradition, the cashiers are only located on the lowest floor. |
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Japan was another market where IKEA performed badly, exited the market completely and then re-entered with an alternative store design and layout with which it finally found success. IKEA entered the Japanese market in 1974 through a franchise arrangement with a local partner, only to withdraw in failure in 1986. Japan was one of the first markets outside its original core European market. Despite Japan being the then second largest economy in the world, IKEA did not adapt its store layout strategy to the Japanese consumer. Japanese consumers did not have a culture of DIY furniture assembly, and many in the early days had no way to haul flat-packs home to their small apartments. Nor did the store layouts familiar to European customers initially make sense to Japanese consumers, so prior to re-entering the Japanese market in 2006, IKEA management did extensive local market research in more effective store layouts. One area of local adaptation was the room displays common to every IKEA store worldwide. Rather than just replicate a European room layout, the Japan management was careful to set up room displays more closely resembling Japanese apartment rooms, such as one for "a typical Japanese teenage boy who likes [[baseball]] and [[computer game]]s".<ref>{{cite news |last1=Wijers-Hasegawa |first1=Yumi |title=Sweden's IKEA back in Japan after 20-year hiatus |url=https://www.japantimes.co.jp/news/2006/04/25/business/swedens-ikea-back-in-japan-after-20-year-hiatus/ |access-date=14 May 2020 |work=The Japan Times |date=25 April 2006 |archive-date=18 June 2020 |archive-url=https://web.archive.org/web/20200618040734/https://www.japantimes.co.jp/news/2006/04/25/business/swedens-ikea-back-in-japan-after-20-year-hiatus/#.Xr4PIS2ZN8c |url-status=live }}</ref> |
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====Inner-city stores==== |
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IKEA stores were first opened in Greece in 2001 in Thessaloniki. It has become a phenomenon with large numbers of Greeks re-furnishing their homes from the store. Some years later IKEA opened 3 new stores in Athens, Larisa and Ioannina. |
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IKEA adapted its store location and services to the 'inner-city' format for expansion in China, unlike other countries where IKEA stores for economic and planning restriction reasons tends to be just outside city centres. In China, planning restrictions are less of an issue due to the lack of cars for much of its customer base. Accordingly, in store design alternatives, IKEA has had to offer store locations and formats closer to public transportation. The store design alternative thinking and strategy in China has been to locate stores to facilitate access for non-car owning customers.<ref>{{cite journal |last1=Hultman |first1=Jens |last2=Johansson |first2=Ulf |last3=Wispeler |first3=Aylin |last4=Wolf |first4=Leonie |title=Exploring store format development and its influence on sore image and store clientele- the case of IKEA's development of an inner-city store format |journal=The International Journal of Retail, Distribution and Consumer Research |volume=27(3) |issue=2007 |pages=227–240 |url=https://www.researchgate.net/publication/316815692 |access-date=11 May 2020}}</ref> In some locations in China, IKEA stores can be found not in the usual suburban or near airport locations like other countries, but rather places such as downtown shopping centres with a 'mini-IKEA' store to attract shoppers. One store design alternative trend IKEA has implemented has been 'pop-up' stores along social media platforms in their advertising strategy, for the first-time as a company, to reach new customers demographics while still reinforcing its global brand locally in China.<ref>{{cite web |last1=Thibaud |first1=Andre |title=IKEA in China: Big furniture retail adapts to the Chinese market. |url=https://daxueconsulting.com/ikea-in-china/ |website=Daxueconsulting |access-date=14 May 2020 |archive-date=17 June 2020 |archive-url=https://web.archive.org/web/20200617044111/https://daxueconsulting.com/ikea-in-china/ |url-status=live }}</ref> |
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====Small sized stores==== |
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The vast majority of IKEA stores are located outside of city centres, primarily because of land cost and traffic access. Several smaller store formats have been unsuccessfully tested in the past (the "midi" concept in the early 90s, which was tested in Ottawa and Heerlen with 9,300 m<sup>2</sup>, or a "boutique" shop in Manhattan). A new format for a full-size, city centre store was introduced with the opening of the Coventry (UK) store in December 2007 as a response to UK government restrictions blocking retail establishment outside city centres,{{Citation needed|date=March 2008}}. With seven levels and a different flow from other IKEA stores, the format is expected to be used for future IKEA stores in the UK. [[Southampton]] IKEA (which opened February, 2009) is also in the city centre. |
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In Hong Kong, where shop space is limited and costly, IKEA has opened 4 stores, all in multi-storey commercial buildings. They are smaller than other IKEA stores but large by Hong Kong standards. In addition to tailoring store sizes for specific countries, IKEA alters the sizes of products to accommodate cultural differences.<ref>{{cite web|url=https://www.fastcompany.com/90215773/how-ikea-quietly-tweaks-its-design-around-the-world|title=How Ikea quietly tweaks its design around the world|last=Schwab|first=Katharine|date=10 August 2018|website=Fast Company|access-date=29 October 2019|archive-date=29 October 2019|archive-url=https://web.archive.org/web/20191029192321/https://www.fastcompany.com/90215773/how-ikea-quietly-tweaks-its-design-around-the-world|url-status=live}}</ref> In 2015, IKEA announced it would attempt smaller store design at locations in Canada. IKEA claimed this new model would allow them to expand quickly into new markets rather than spending years opening a full-size store.<ref>{{cite news|url=http://www.cbc.ca/news/canada/kitchener-waterloo/ikea-coming-to-kitchener-1.3332494|title=Ikea coming to Kitchener – Kitchener-Waterloo – CBC News|access-date=21 December 2015|archive-date=22 December 2015|archive-url=https://web.archive.org/web/20151222205730/http://www.cbc.ca/news/canada/kitchener-waterloo/ikea-coming-to-kitchener-1.3332494|url-status=live}}</ref> |
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In 2020, IKEA opened at [[Al Wahda Mall]] in [[Abu Dhabi|Abu Dhabi, United Arab Emirates]], which, at {{cvt|2137|m2|0}}, was one of the smallest IKEA stores to-date.<ref>{{cite web|last=Issacs|first=Derek|date=6 September 2020|title=Al Wahda IKEA now has an opening date|url=https://adwonline.ae/ikea-abu-dhabi/|access-date=7 July 2021|website=Abu Dhabi World Online|archive-date=9 July 2021|archive-url=https://web.archive.org/web/20210709184411/https://adwonline.ae/ikea-abu-dhabi/|url-status=live}}</ref><ref>{{cite web|date=18 November 2020|title=The new Ikea store in Al Wahda Mall Abu Dhabi is now open|url=https://whatson.ae/2020/11/ikea-al-wahda-abu-dhabi-now-open/|access-date=7 July 2021|website=What's On|archive-date=9 July 2021|archive-url=https://web.archive.org/web/20210709185323/https://whatson.ae/2020/11/ikea-al-wahda-abu-dhabi-now-open/|url-status=live}}</ref><ref>{{cite web|title=Inside Ikea Al Wahda Mall: an exclusive look inside Abu Dhabi's latest store|url=https://www.thenationalnews.com/lifestyle/home/inside-ikea-al-wahda-mall-an-exclusive-look-inside-abu-dhabi-s-latest-store-1.1108693|access-date=7 July 2021|website=The National|date=11 November 2020|archive-date=1 June 2021|archive-url=https://web.archive.org/web/20210601162030/https://www.thenationalnews.com/lifestyle/home/inside-ikea-al-wahda-mall-an-exclusive-look-inside-abu-dhabi-s-latest-store-1.1108693|url-status=live}}</ref><ref>{{cite web|title=IKEA OPENS DOORS TO THE SECOND STORE IN ABU DHABI IN AL WAHDA MALL|url=https://www.alfuttaim.com/media_center/ikea-opens-doors-to-the-second-store-in-abu-dhabi-in-al-wahda-mall/|access-date=7 July 2021|website=Al-Futtaim|archive-date=9 July 2021|archive-url=https://web.archive.org/web/20210709183705/https://www.alfuttaim.com/media_center/ikea-opens-doors-to-the-second-store-in-abu-dhabi-in-al-wahda-mall/|url-status=live}}</ref> The company also opened at [[360 Mall]] in [[Kuwait]] and in [[Harajuku]], a trendy part of [[Tokyo]], that same year. The size of the Kuwaiti 360 Mall store was slightly larger than Al Wahda's (despite bringing a similar concept), at {{cvt|3000|m2}}, built as an extension of the mall.<ref>{{cite web|title=DISCOVER IKEA 360|url=https://bazaar.town/ikea-360/|access-date=9 September 2021|website=bazaar.town {{!}} The ultimate guide to Kuwait|archive-date=9 September 2021|archive-url=https://web.archive.org/web/20210909025603/https://bazaar.town/ikea-360/|url-status=live}}</ref> As for IKEA Harajuku, the {{cvt|2500|m2|0}}, 7-storey store houses the chain's first and only ''[[konbini]]'' concept.<ref>{{cite web |title=First IKEA Convenience Store Opens in Tokyo! Compact IKEA in Harajuku and Shibuya {{!}} LIVE JAPAN travel guide |url=https://livejapan.com/en/article-a0004607/ |access-date=8 July 2022 |website=LIVE JAPAN|archive-date=15 May 2022 |archive-url=https://web.archive.org/web/20220515190014/https://livejapan.com/en/article-a0004607/ |url-status=live }}</ref><ref>{{cite web |title=IKEA Harajuku – Central Tokyo's First Ever Ikea Store! |url=https://www.fun-japan.jp/en/articles/11600 |access-date=8 July 2022 |website=FUN! JAPAN International|archive-date=8 July 2022 |archive-url=https://web.archive.org/web/20220708064204/https://www.fun-japan.jp/en/articles/11600 |url-status=live }}</ref> In 2021, IKEA opened another one of its smallest stores, located at the [[Jem, Singapore|JEM Mall in Jurong East]], [[Singapore]]. Replacing liquidated department store [[Robinsons & Co.|Robinsons]], IKEA Jurong is only {{cvt|6500|m2}}, encompassing three levels; it was the first location in Southeast Asia that did not provide the "Market Hall" warehouse in its store.<ref>{{cite web|title=6 things to look out for when the new 3-storey IKEA at Jem opens on Apr 29|url=https://cnalifestyle.channelnewsasia.com/trending/ikea-singapore-jem-jurong-opening-promotions-discounts-14709368|access-date=9 July 2021|website=CNA Lifestyle|archive-date=9 July 2021|archive-url=https://web.archive.org/web/20210709185550/https://cnalifestyle.channelnewsasia.com/trending/ikea-singapore-jem-jurong-opening-promotions-discounts-14709368|url-status=live}}</ref><ref>{{cite web|title=First look: IKEA Jurong opening on April 29, 2021 with cashless concept|url=https://mothership.sg/2021/04/ikea-jem-first-look/|access-date=9 July 2021|website=mothership.sg|archive-date=9 July 2021|archive-url=https://web.archive.org/web/20210709185849/https://mothership.sg/2021/04/ikea-jem-first-look/|url-status=live}}</ref> Also during 2021, IKEA opened a small-store-format location on [[Bali|Bali, Indonesia]], replacing the liquidated former [[Giant (hypermarket)|Giant]] hypermarket. IKEA Bali is dubbed "Customer Meeting Point", and is the smallest store to open thus far, at {{cvt|1200|m2}}.<ref>{{cite web |last=Fimela.com |date=19 November 2021 |title=IKEA Buka di Bali, Jadi Gerai Terkecil dan Artsy di Indonesia |url=https://www.fimela.com/lifestyle/read/4715276/ikea-buka-di-bali-jadi-gerai-terkecil-dan-artsy-di-indonesia |access-date=10 May 2022 |website=fimela.com |language=id |archive-date=6 April 2023 |archive-url=https://web.archive.org/web/20230406210006/https://www.fimela.com/lifestyle/read/4715276/ikea-buka-di-bali-jadi-gerai-terkecil-dan-artsy-di-indonesia |url-status=live }}</ref><ref>{{cite web |title=Akomodasi UMKM Lokal, IKEA Bali Resmi Dibuka, Visual Toko Gabungkan Budaya Swedia dan Bali |url=https://idea.grid.id/read/093001567/akomodasi-umkm-lokal-ikea-bali-resmi-dibuka-visual-toko-gabungkan-budaya-swedia-dan-bali?page=all |access-date=10 May 2022 |archive-date=6 April 2023 |archive-url=https://web.archive.org/web/20230406210008/https://idea.grid.id/read/093001567/akomodasi-umkm-lokal-ikea-bali-resmi-dibuka-visual-toko-gabungkan-budaya-swedia-dan-bali?page=all |url-status=live }}</ref><ref>{{cite web |title=Makin Mudah Dijangkau, IKEA Kini Hadir di Bali |url=http://bisnisbali.com/makin-mudah-dijangkau-ikea-kini-hadir-di-bali/ |access-date=10 May 2022 |archive-date=18 November 2021 |archive-url=https://web.archive.org/web/20211118093307/http://bisnisbali.com/makin-mudah-dijangkau-ikea-kini-hadir-di-bali/ |url-status=live }}</ref><ref>{{cite web |last=Afriyadi |first=Achmad Dwi |title=Buka Cabang di Bali, IKEA Juga Jualan Produk Lokal |url=https://finance.detik.com/berita-ekonomi-bisnis/d-5823406/buka-cabang-di-bali-ikea-juga-jualan-produk-lokal |access-date=10 May 2022 |website=detikfinance |language=id-ID |archive-date=10 May 2022 |archive-url=https://web.archive.org/web/20220510075423/https://finance.detik.com/berita-ekonomi-bisnis/d-5823406/buka-cabang-di-bali-ikea-juga-jualan-produk-lokal |url-status=live }}</ref> |
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Another feature of IKEA stores are their long opening hours. Many stores are in operation 24 hours a day with restocking and maintenance being carried out throughout the night. However, public opening hours tend to be much longer than most other retailers, with stores open well into the evening in many countries. In the UK, almost all stores are open past 8pm and open around 9 to 10am. IKEA Saudi Arabia stores have some of the longest opening hours worldwide being open from 10am to midnight, 7 days a week. |
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[[File:IKEA Mall Taman Anggrek.jpg|thumb|IKEA at Mall Taman Anggrek, Jakarta]] |
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In 2022, another smaller store was opened inside [[Livat Hammersmith]], [[London]], at {{cvt|4600|m2}},<ref>{{cite web |title=First look: Ikea opens first city centre shopping mall in west London |url=https://www.retailgazette.co.uk/blog/2022/02/first-look-ikea-opens-first-city-centre-shopping-mall-in-west-london/ |access-date=21 March 2022 |website=retailgazette.co.uk |date=24 February 2022 |archive-date=28 February 2022 |archive-url=https://web.archive.org/web/20220228005854/https://www.retailgazette.co.uk/blog/2022/02/first-look-ikea-opens-first-city-centre-shopping-mall-in-west-london/ |url-status=live }}</ref><ref>{{cite web |date=24 February 2022 |title=IKEA Are Opening A Brand New Store In Hammersmith This Year |url=https://secretldn.com/ikea-hammersmith-store/ |access-date=21 March 2022 |website=Secret London|archive-date=24 January 2022 |archive-url=https://web.archive.org/web/20220124000407/https://secretldn.com/ikea-hammersmith-store/ |url-status=live }}</ref><ref>{{cite web |date=25 February 2022 |title=Boost for Hammersmith as IKEA opens new store in new-look mall |url=https://www.lbhf.gov.uk/articles/news/2022/02/boost-hammersmith-ikea-opens-new-store-new-look-mall |access-date=21 March 2022 |website=LBHF|archive-date=6 March 2022 |archive-url=https://web.archive.org/web/20220306013030/https://www.lbhf.gov.uk/articles/news/2022/02/boost-hammersmith-ikea-opens-new-store-new-look-mall |url-status=live }}</ref> followed by a {{cvt|9400|m2}} store inside [[Mall Taman Anggrek]], [[Jakarta]], which was opened on 7 April 2022.<ref>{{cite web |date=3 November 2021 |title=Ikea to open first mall store in Indonesia |url=https://insideretail.asia/2021/11/03/ikea-to-open-first-mall-store-in-indonesia/ |access-date=21 March 2022 |website=Inside Retail|archive-date=25 June 2022 |archive-url=https://web.archive.org/web/20220625144633/https://insideretail.asia/2021/11/03/ikea-to-open-first-mall-store-in-indonesia/ |url-status=live }}</ref><ref>{{cite web |title=IKEA Indonesia Resmi Bangun Konsep Toko Baru di Mall Taman Anggrek |url=https://www.ikea.co.id/in/ruang-berita/berita/umum/detail/ikea-indonesia-resmi-bangun-konsep-toko-baru-di-mall-taman-anggrek |date=28 October 2021 |access-date=21 March 2022 |website=IKEA Indonesia |language=id |archive-date=9 August 2022 |archive-url=https://web.archive.org/web/20220809231623/https://www.ikea.co.id/in/ruang-berita/berita/umum/detail/ikea-indonesia-resmi-bangun-konsep-toko-baru-di-mall-taman-anggrek |url-status=live }}</ref><ref>{{cite web |title=IKEA Buka Gerai Baru di Mal Taman Anggrek, Hadirkan Konsep City Store Pertama |url=https://kumparan.com/kumparanwoman/ikea-buka-gerai-baru-di-mal-taman-anggrek-hadirkan-konsep-city-store-pertama-1xr11A1KGcy |access-date=11 April 2022 |website=kumparan |language=id-ID |archive-date=10 April 2022 |archive-url=https://web.archive.org/web/20220410041539/https://kumparan.com/kumparanwoman/ikea-buka-gerai-baru-di-mal-taman-anggrek-hadirkan-konsep-city-store-pertama-1xr11A1KGcy |url-status=live }}</ref><ref>{{cite web |title=Buka Gerai Baru di Mall Taman Anggrek, Ini Dia Jam Operasional IKEA Cabang Ke-6 – iDEA |url=https://idea.grid.id/read/093226642/buka-gerai-baru-di-mall-taman-anggrek-ini-dia-jam-operasional-ikea-cabang-ke-6 |access-date=11 April 2022 |website=idea.grid.id |language=id |archive-date=6 April 2023 |archive-url=https://web.archive.org/web/20230406210011/https://idea.grid.id/read/093226642/buka-gerai-baru-di-mall-taman-anggrek-ini-dia-jam-operasional-ikea-cabang-ke-6 |url-status=live }}</ref><ref>{{cite web |last1=Times |first1=I. D. N. |last2=Murdianto |first2=Muhammad Tarmizi |title=IKEA Indonesia Buka City Store Pertama di Mal Taman Anggrek |url=https://www.idntimes.com/life/family/muhammad-tarmizi-murdianto/ikea-indonesia-buka-city-store-pertama-di-mal-taman-anggrek |access-date=11 April 2022 |website=IDN Times |language=id |archive-date=8 April 2022 |archive-url=https://web.archive.org/web/20220408125720/https://www.idntimes.com/life/family/muhammad-tarmizi-murdianto/ikea-indonesia-buka-city-store-pertama-di-mal-taman-anggrek |url-status=live }}</ref><ref>{{cite web |title=9 Potret IKEA Mall Taman Anggrek, Luasnya 9.400 Meter Persegi |url=https://www.msn.com/id-id/travel/ideperjalanan/9-potret-ikea-mall-taman-anggrek-luasnya-9-400-meter-persegi/ar-AAW3nA8 |access-date=11 April 2022 |publisher=MSN |language=id-ID |archive-date=11 April 2022 |archive-url=https://web.archive.org/web/20220411021719/https://www.msn.com/id-id/travel/ideperjalanan/9-potret-ikea-mall-taman-anggrek-luasnya-9-400-meter-persegi/ar-AAW3nA8 |url-status=live }}</ref><ref>{{cite web |date=7 April 2022 |title=IKEA Buka City Store Pertama di Mal Taman Anggrek {{!}} Ekonomi |url=https://ekonomi.bisnis.com/read/20220407/12/1520378/ikea-buka-city-store-pertama-di-mal-taman-anggrek |access-date=11 April 2022 |website=Bisnis.com |language=id |archive-date=7 April 2022 |archive-url=https://web.archive.org/web/20220407093830/https://ekonomi.bisnis.com/read/20220407/12/1520378/ikea-buka-city-store-pertama-di-mal-taman-anggrek |url-status=live }}</ref> |
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==Products and services== |
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===Furniture and homeware=== |
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[[File:RedHookIkeaByLuigiNovi3.jpg|thumb|The cafeteria of the [[Red Hook, Brooklyn]] IKEA in New York City.]] |
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[[File:Assembling an Ikea poäng chair (9055631329).jpg|thumb|A man assembling an IKEA [[Poäng]] chair]] |
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Many stores include restaurants serving traditional [[cuisine of Sweden|Swedish food]], including potatoes with [[Köttbullar|Swedish meatballs]], cream sauce and [[lingonberry jam]], although there are variations. In Kuala Lumpur, Malaysia the usual boiled potatoes have been switched to [[french fries]]. Besides these Swedish staples, [[hot dog]]s and drinks are also sold, along with a few varieties of the local cuisine, and beverages such as [[Vaccinium vitis-idaea|lingonberry]] juice. Also items such as [[Swedish cuisine#Desserts|Prinsesstårta — Princess cake]] are sold as desserts. IKEA stores in [[Saudi Arabia]] and the [[United Arab Emirates]] serve [[Chicken (food)|chicken]] [[shawarma]] at the exit café as well as hot dogs. |
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Rather than being sold pre-assembled, much of IKEA's furniture is designed to be [[Ready-to-assemble furniture|assembled by the customer]]. The company claims that this helps reduce costs and use of packaging by not shipping air; the volume of a bookcase, for example, is considerably less if it is shipped unassembled rather than assembled. This is also more practical for European customers using public transport, because flat packs can be more easily carried. |
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In many locations, the IKEA restaurants open daily before the rest of the store and serve an inexpensive breakfast. In Canada, this breakfast includes eggs, sausage, and hash browns and various add-ons like bacon and pancakes at additional costs. In the United States, the local variation serves scrambled eggs, bacon, country potatoes and choice of [[Swedish pancake]]s or [[french toast]] sticks. In the Netherlands, it consists of a [[croissant]], a small [[bread roll]], butter or margarine, jam, a slice of cheese, a boiled egg, and coffee or tea. In Australia, it consists of hash brown, bacon, scrambled eggs, a sausage, and tomato, with a vegetarian option with baked beans which omits the sausage and bacon.<ref>{{cite web|url=http://www.ikea.com/au/en/store/homebush/restaurant |title=IKEA Restaurant |publisher=IKEA.com |date=September 25, 2008 |accessdate=December 26, 2010}}</ref><ref>{{cite web|url=http://www.ikea.com/au/en/store/richmond/restaurant |title=IKEA Restaurant |publisher=IKEA.com |date=September 25, 2008 |accessdate=December 26, 2010}}</ref><ref>{{cite web|url=http://www.ikea.com/au/en/store/logan/restaurant |title=IKEA Restaurant |publisher=IKEA.com |date=September 25, 2008 |accessdate=December 26, 2010}}</ref> In Germany, this breakfast consists of two bread rolls, one slice of smoked salmon, one slice of cheese, one slice of salami, two portions of butter, one portion of jam, and coffee. IKEA Canada, for a limited time, served dim sum alongside its original breakfast menu. Refills of coffee, tea, and soft drinks are, as is traditional in Sweden, free of charge, even in countries where this is uncommon in other restaurants. |
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IKEA contends that it has been a pioneering force in [[sustainability|sustainable approach]]es to [[Consumerism|mass consumer culture]].<ref>{{Cite web |url=http://www.ikea.com/ms/en_CA/pdf/sustainability_report/group_approach_sustainability_fy11.pdf |title=The IKEA Group approach to sustainability (2011) |access-date=25 July 2017 |archive-date=19 August 2020 |archive-url=https://web.archive.org/web/20200819181549/https://www.ikea.com/ca/en/files/pdf/d6/90/d6905036/ikea_group_sustainability_report_fy17.pdf |url-status=dead }}</ref> Kamprad calls this "democratic design", meaning that the company applies an integrated approach to manufacturing and design (see also [[environmental design]]). In response to the [[explosion of human population]] and material expectations in the 20th and 21st centuries, the company implements [[economies of scale]], capturing material streams and creating manufacturing processes that hold costs and resource use down, such as the extensive use of [[medium-density fibreboard]] ("MDF"), also called "particle board". |
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Many stores also have a Swedish Food Market that until the fall of 2011 sold Swedish-made, Swedish-style groceries, such as Swedish meatballs, packages of gravy and various Scandinavian cookies and crackers, as well as salmon and salmon [[roe]]. IKEA also sells lingonberry jam in a wide array of sizes, including buckets. IKEA has extended its product range with the introduction the IKEA food label. The new label has various different foods including, chocolates, meatballs, jams, pancakes, salmon, and various drinks. All IKEA Food products are based on Swedish recipes and traditions. The majority of the food production still takes place in Sweden by small, medium and large manufacturers. |
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Notable items of IKEA furniture include the [[Poäng]] armchair, the [[Billy (bookcase)|Billy]] bookcase and the [[Klippan (sofa)|Klippan]] sofa, all of which have sold by the tens of millions since the late 1970s and early 1980s.<ref>{{Cite news|url=http://www.businessinsider.com/most-popular-ikea-products-2016-9/#2-the-poaeng-chair-sells-15-million-units-a-year-11|title=The 12 most popular IKEA products of all time|work=Business Insider|access-date=2 October 2017|archive-date=4 June 2020|archive-url=https://web.archive.org/web/20200604121815/https://www.businessinsider.com/most-popular-ikea-products-2016-9#2-the-poaeng-chair-sells-15-million-units-a-year-11|url-status=live}}</ref><ref>{{Cite news|url=https://www.nytimes.com/2016/09/12/t-magazine/design/ikea-forever.html |archive-url=https://ghostarchive.org/archive/20220103/https://www.nytimes.com/2016/09/12/t-magazine/design/ikea-forever.html |archive-date=3 January 2022 |url-access=subscription |url-status=live|title=Ikea Forever|last=Fortini|first=Amanda|date=12 September 2016|work=The New York Times|access-date=2 October 2017|issn=0362-4331}}{{cbignore}}</ref> |
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=== Småland === |
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Many stores have a [[play area]], named [[Småland]] (Swedish direct translation ''small land'', can mean a lot of things but here it means land for the small ones. Småland is also the name of the province of Sweden where Ingvar Kamprad was born). Parents drop off their children at a gate to the playground, and pick them up after they arrive at another entrance. Parents are also given free pagers by the on-site staff; the staff will set off these pagers should a child need his or her parents sooner than expected. |
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The IKEA and LEGO brands teamed up to create a range of simple storage solutions for children and adults.<ref>{{cite web|date=1 September 2020|title=IKEA x LEGO Collaboration Releases Storage Boxes That Are Also Toys|url=https://mymodernmet.com/ikea-lego-storage-boxes-bygglek/|access-date=26 November 2020|website=My Modern Met|archive-date=27 September 2020|archive-url=https://web.archive.org/web/20200927170519/https://mymodernmet.com/ikea-lego-storage-boxes-bygglek/|url-status=live}}</ref> |
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==Products== |
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===Furniture=== |
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Rather than being sold pre-assembled, much of IKEA's furniture is designed to be [[Ready-to-assemble furniture|self-assembled]]. The company claims that this helps reduce costs and use of packaging by not shipping air; the volume of a bookcase, for example, is considerably less if it is shipped unassembled rather than assembled. This is also practical for many of the chain's European customers, where public transport is commonly used, with the flat-pack methods allowing for easier transport via public transportation. |
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In June 2021, IKEA Canada unveiled a series of 10 "Love Seats" inspired by different Pride flags, created by four LGBTQ designers.<ref>{{cite news|date=30 June 2021|title=IKEA unveils LGBTQ-themed sofas – and the internet has thoughts on its 'bisexual couch'|url=https://www.cnn.com/style/article/ikea-pride-couches/index.html|publisher=CNN|access-date=30 June 2021|archive-date=30 June 2021|archive-url=https://web.archive.org/web/20210630180822/https://www.cnn.com/style/article/ikea-pride-couches/index.html|url-status=live}}</ref> |
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IKEA contends that it has been a pioneering force in sustainable approaches to mass [[Consumerism|consumer culture]].{{Citation needed|date=February 2008}}. Kamprad refers to the concept as "democratic design," meaning that the company applies an integrated approach to [[manufacturing]] and design (see also [[environmental design]]). In response to the explosion of human population and material expectations in the 20th and 21st century, the company implements [[economies of scale]], capturing material streams and creating manufacturing processes that hold costs and resource use down, such as the extensive use of MDF (medium-density fiberboard). MDF, mistakenly called "particle board", is engineered wood fiber glued under heat and pressure to create a building material of superior strength which is resistant to warp. IKEA uses cabinet-grade and furniture-grade MDF in all of its MDF products, such as PAX wardrobes and kitchen cubboards. IKEA also uses wood, plastic, and other materials for furniture and other products. The intended result is flexible, adaptable home furnishings, scalable both to smaller homes and dwellings as well as large houses. |
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====Furniture and product naming==== |
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Not all furniture is stocked at the store level, such as particular sofa colors needing to be shipped from a warehouse to the customer's home (for a delivery charge). The item can also be shipped from the warehouse to the store. Some stores charge an extra fee for this service, but not all.{{Clarify|date=July 2009}} |
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IKEA products are identified by one-word (occasionally, two-word) names, predominantly in the [[Swedish language]] (or otherwise [[Scandinavia]]n in origin). With few exceptions, most product names are based on a special naming system developed by the company.<ref>{{cite web|title=The IKEA Dictionary|url=http://lar5.com/ikea/index.html|author=Lars Petrus|access-date=27 December 2013|archive-date=12 November 2020|archive-url=https://web.archive.org/web/20201112024552/https://lar5.com/ikea/index.html|url-status=live}}</ref> The company founder Kamprad was [[dyslexic]], and found that naming the furniture with proper names and words, rather than a long product code, made the products easier to identify and remember.<ref>{{cite news|url=https://www.theguardian.com/lifeandstyle/2008/feb/04/shopping.retail|work=The Guardian|location=London|title=Do you speak Ikea?|first=Jon|last=Henley|date=4 February 2008|access-date=5 May 2010|archive-date=12 November 2020|archive-url=https://web.archive.org/web/20201112041019/http://www.theguardian.com/lifeandstyle/2008/feb/04/shopping.retail|url-status=live}}</ref> Products are usually named after locations in Scandinavian countries, using names of places in Sweden for sofas and coffee tables, Denmark for textiles, and Norway for beds. Lamps get their names from seas and lakes, while outdoor furniture is named after islands.<ref>{{Cite book |last=Bjarnestam |first=Eva Atle |title=IKEA. Design och identitet |publisher=drängahuset Handelsbolag |year=2009 |isbn=9789151937403 |pages=209 |language=Swedish}}</ref> |
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A number of IKEA's products bearing Swedish names have (or have had) pronunciations that are humorous to some and [[Brand blunder|offensive to others]] (but no less "[[Language barrier|lost-in-translation]]"), by not only English-speakers but speakers of many different languages. At times, this product-identification has resulted in certain names being changed, or withdrawn completely from certain markets. More often than not, this confusion is simply a result of the Swedish language not being executed correctly, let alone understood, by the reader; nonetheless, this has resulted in potentially "naughty"—or even gravely offensive—connotations, depending on the area in question. Notable examples (for English-speakers) include a since-discontinued (2013) computer desk called ''jerker'' (referring to "the jerks" or "jerks"), a foliar plant spray called ''fukta'' ("moisten"), a [[workbench]] called ''fartfull'' ("speedy", "quick"),<ref>[https://web.archive.org/web/20060208123705/http://www.findarticles.com/p/articles/mi_qn4155/is_200408/ai_n12556896 'Fartfull' workbench, 'Jerker' desk: Is Ikea hiding a grin?] ''[[Chicago Sun-Times]],'' 17 August 2004</ref> and a table called ''lyckhem'' (pronounced roughly as "''look-em''"), meaning "bliss" or a "happy home". |
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===Houses, flats=== |
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IKEA has also expanded their product base to include flat-pack houses, in an effort to cut prices involved in a first-time buyer's home. The product, named [http://www.boklok.com/ BoKlok] was launched in Sweden in 1996 in a joint venture with [[Skanska]]. Now working in the Nordic countries and in UK, sites confirmed in England include London, [[Manchester]], [[Leeds]], [[Gateshead]] and [[Liverpool]].<ref>{{Cite news|url=http://shopping.guardian.co.uk/household/story/0,1587,1403793,00.html|title=Buying a house? Pick up a flatpack at Ikea|date=February 2, 2005|publisher=guardian.co.uk | location=London | first=Martin | last=Wainwright | accessdate=May 5, 2010}}</ref> |
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Due to several products being named after real places, some locales have ended-up sharing names with objects considered generally unpleasant, such as a [[toilet brush]] being named after the lake of [[Bolmen]], or a [[trash can|rubbish bin]] named after the Norwegian village of [[Tofte, Norway|Tofte]]. In November 2021, VisitSweden.com launched a [[Joke|jocular]] campaign named "Discover the Originals", which invited tourists to visit the physical locations which have received such unfortunate associations with IKEA products.<ref>{{cite web |author=Leslie Katz |url=https://www.cnet.com/news/sweden-reclaims-ikea-product-names-bolmen-more-than-a-toilet-brush/ |title=Sweden reclaims Ikea product names: 'Bolmen, more than a toilet brush' |publisher=CNET |date=10 December 2021 |access-date=25 February 2022 |archive-date=20 February 2022 |archive-url=https://web.archive.org/web/20220220134613/https://www.cnet.com/news/sweden-reclaims-ikea-product-names-bolmen-more-than-a-toilet-brush/ |url-status=live }}</ref><ref>{{cite web |url=https://kottke.org/21/12/lake-toiletbrush-and-the-curse-of-ikeas-product-names |title=Lake Toiletbrush and the Curse of Ikea's Product Names |publisher=Kottke.org |date=20 December 2021 |access-date=25 February 2022 |archive-date=23 January 2022 |archive-url=https://web.archive.org/web/20220123101621/https://kottke.org/21/12/lake-toiletbrush-and-the-curse-of-ikeas-product-names |url-status=live }}</ref> |
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===Family Mobile=== |
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{{Main|IKEA Family Mobile}} |
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On August 8, 2008, IKEA UK launched [[Family Mobile]], a [[Mobile virtual network operator|virtual mobile phone network]], running on [[T-Mobile]]. |
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===Design services=== |
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[[File:Ikea Planning Studio (48064098962).jpg|thumb|right|The first US Planning Studio located in [[Manhattan]], United States, in 2019, which closed in January 2022<ref>{{cite web |title=IKEA U.S. to relocate Upper East Side planning studio |url=https://www.ikea.com/us/en/newsroom/corporate-news/ikea-u-s-to-relocate-its-upper-east-side-planning-studio-that-will-close-january-2022-pub59241b37 |access-date=4 May 2022 |website=ikea.com|archive-date=4 May 2022 |archive-url=https://web.archive.org/web/20220504193803/https://www.ikea.com/us/en/newsroom/corporate-news/ikea-u-s-to-relocate-its-upper-east-side-planning-studio-that-will-close-january-2022-pub59241b37 |url-status=live }}</ref>]] |
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Although IKEA household products and furniture are designed in Sweden, they are largely manufactured in developing countries to keep costs down. With suppliers in 50 countries, roughly 2/3 of purchasing is from Europe with about 1/3 from Asia. A small amount of products are produced in North America. Comparatively little production actually takes place in Sweden, though it still remains the fourth-largest supplier country (behind China, Poland and Italy).{{Citation needed|date=February 2008}} China accounts for about 2.5 times as much supply as Sweden. For most of its products, the final assembly is performed by the end-user (consumer). |
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In March 2021, IKEA launched IKEA Studio in partnership with [[Apple Inc.]], an app enabling customers to design full-scale rooms with IKEA furniture using [[augmented reality]] on an [[iPhone]].<ref>{{Cite news|title=IKEA's fancy new AR app lets you design entire rooms|magazine=Wired UK|url=https://www.wired.co.uk/article/ikea-studio-ar-app|access-date=8 September 2021|issn=1357-0978|archive-date=8 September 2021|archive-url=https://web.archive.org/web/20210908011357/https://www.wired.co.uk/article/ikea-studio-ar-app|url-status=live}}</ref> |
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===Product names=== |
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IKEA products are identified by single word names. Most of the names are Swedish in origin. Although there are some notable exceptions, most product names are based on a special naming system developed by IKEA.<ref>{{De icon}} {{cite web|url=http://www.stern.de/wirtschaft/unternehmen/index.html?eid=504885&id=506948&nv=ex_rt|title=Waren Sie schon mal in Klippan?}}</ref> |
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===Smart home=== |
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* ''Upholstered furniture, coffee tables, rattan furniture, bookshelves, media storage, doorknobs:'' Swedish placenames (for example: [[Klippan (sofa)|Klippan]]) |
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In 2016, IKEA started a move into the smart home business. The IKEA TRÅDFRI smart lighting kit was one of the first ranges signalling this change.<ref>{{cite web|url=https://www.cnet.com/uk/products/ikea-tradfri-smart-lighting-kit/review/|title=Ikea Tradfri Smart Lighting Kit|publisher=CNET|access-date=15 May 2017|archive-date=20 May 2017|archive-url=https://web.archive.org/web/20170520214804/https://www.cnet.com/uk/products/ikea-tradfri-smart-lighting-kit/review/|url-status=live}}</ref> IKEA has also started a partnership with [[Philips Hue]].<ref>{{cite web|url=https://www.smarthomegeeks.co.uk/news/ikea-tradfri-hue-work-together-now/|title=Ikea Trådfri & Hue work together NOW!|website=Smart Home Geeks|date=11 August 2017|access-date=11 August 2017|archive-date=23 August 2017|archive-url=https://web.archive.org/web/20170823205406/https://www.smarthomegeeks.co.uk/news/ikea-tradfri-hue-work-together-now/|url-status=live}}</ref> The wireless charging furniture, integrating wireless [[Qi (standard)|Qi charging]] into everyday furniture, is another strategy for the smart home business.<ref>{{cite web|url=http://www.ikea.com/us/en/catalog/categories/departments/wireless_charging/|title=Wireless Charging – IKEA|website=ikea.com|access-date=17 October 2017|archive-date=18 October 2017|archive-url=https://web.archive.org/web/20171018061301/http://www.ikea.com/us/en/catalog/categories/departments/wireless_charging/|url-status=live}}</ref> |
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* ''Beds, wardrobes, hall furniture:'' Norwegian place names |
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* ''Dining tables and chairs:'' Finnish place names |
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* ''Bookcase ranges:'' Occupations |
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* ''Bathroom articles:'' Scandinavian lakes, rivers and bays |
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* ''Kitchens:'' grammatical terms, sometimes also other names |
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* ''Chairs, desks:'' men's names |
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* ''Fabrics, curtains:'' women's names |
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* ''Garden furniture:'' Swedish islands |
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* ''Carpets:'' Danish place names |
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* ''Lighting:'' terms from music, chemistry, meteorology, measures, weights, seasons, months, days, boats, nautical terms |
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* ''Bedlinen, bed covers, pillows/cushions:'' flowers, plants, precious stones |
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* ''Children's items:'' mammals, birds, adjectives |
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* ''Curtain accessories:'' mathematical and geometrical terms |
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* ''Kitchen utensils:'' foreign words, spices, herbs, fish, mushrooms, fruits or berries, functional descriptions |
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* ''Boxes, wall decoration, pictures and frames, clocks:'' colloquial expressions, also Swedish place names |
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For example, ''DUKTIG'' (meaning: good, well-behaved) is a line of children's toys, ''OSLO'' is a name of a bed, ''BILLY'' (a Swedish masculine name) is a popular bookcase, ''DINERA'' (meaning: (to) dine) for tableware, ''KASSETT'' (meaning: cassette) for media storage. One range of office furniture is named ''EFFEKTIV'' (meaning: efficient, effective), ''SKÄRPT'' (meaning: sharp or clever) is a line of kitchen knives. |
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A collaboration to build [[Sonos]] [[smart speaker]] technology into furniture sold by IKEA was announced in December 2017.<ref>{{Cite news|url=https://techcrunch.com/2017/12/06/sonos-and-ikea-are-collaborating-on-sound-products-for-the-home/|title=Sonos and Ikea are collaborating on sound products for the home|last=Tepper|first=Fitz|date=6 December 2017|work=[[TechCrunch]]|access-date=8 December 2017|publisher=[[Oath Inc.]]|archive-date=8 December 2017|archive-url=https://web.archive.org/web/20171208115221/https://techcrunch.com/2017/12/06/sonos-and-ikea-are-collaborating-on-sound-products-for-the-home/|url-status=live}}</ref> The first products resulting from the collaboration launched in August 2019.<ref>{{Cite news|url=https://variety.com/2017/digital/news/sonos-ikea-partnership-1202632104/|title=Sonos Teams Up With Ikea for Smart Home Audio|last=Roettgers|first=Janko|date=6 December 2017|work=[[Variety (magazine)|Variety]]|access-date=8 December 2017|archive-date=8 December 2017|archive-url=https://web.archive.org/web/20171208121207/http://variety.com/2017/digital/news/sonos-ikea-partnership-1202632104/|url-status=live}}</ref> |
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A notable exception is the ''IVAR'' shelving system, which dates back to the early 1970s. This item is named after the item's designer. |
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Under the product name SYMFONISK, IKEA and Sonos have made two distinct wireless speakers that integrate with existing Sonos households or can be used to start with the Sonos-ecosystem, one that's also a lamp and another that's a more traditional looking bookshelf speaker. Both products as well as accessories for the purpose of mounting the bookshelf speakers have gone on sale worldwide on 1 August.<ref>{{cite web|url=https://newsroom.inter.ikea.com/news/symfonisk-is-here---ikea-and-sonos-to-rethink-the-way-we-use-sound-and-light/s/f2df1cbb-0a15-4887-838e-82bd011a7fa8|title=Symfonisk is here, Ikea and Sonos rethink the way we use sound and light|website=ikea.com|access-date=5 August 2019|archive-date=5 August 2019|archive-url=https://web.archive.org/web/20190805133530/https://newsroom.inter.ikea.com/news/symfonisk-is-here---ikea-and-sonos-to-rethink-the-way-we-use-sound-and-light/s/f2df1cbb-0a15-4887-838e-82bd011a7fa8|url-status=live}}</ref> |
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Because IKEA is a worldwide company working in several countries with several different languages, sometimes the Nordic naming leads to problems where the word means something completely different to the product. While exotic-sounding names draw attention, e.g., in [[English-speaking world|anglophone]] countries, a number of them call for a snicker. Notable examples include "Jerker" desk, "Fukta" plant spray and "Fartfull" workbench.<ref>[http://findarticles.com/p/articles/mi_qn4155/is_200408/ai_n12556896 'Fartfull' workbench, 'Jerker' desk: Is Ikea hiding a grin?]''[[Chicago Sun-Times]],'' August 17, 2004</ref> Also, the most recent new product, Lyckhem (meaning bliss). The products are generally withdrawn, probably after someone pointed at blunders, but not before generating some news. Similar blunders happen with other companies as well.<ref>{{Cite news|author=From correspondents in London |url=http://www.news.com.au/couriermail/story/0,23739,23142815-5003501,00.html |title='Lolita' bed set for girls withdrawn |publisher=News.com.au |date=February 1, 2008 |accessdate=June 10, 2009}} {{Dead link|date=September 2010|bot=H3llBot}}</ref> |
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From the start, IKEA SYMFONISK can only be controlled from the Sonos app, but IKEA added support for the speakers in their own Home Smart app to be paired with scenes that control both the lights, air purifiers, smart plugs and smart blinds together with the speakers.<ref name=":3" /> |
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Company founder Ingvar Kamprad, who is [[dyslexia|dyslexic]], found that naming the furniture with proper names and words, rather than a product code, made the names easier to remember.<ref>{{Cite news| url=http://www.guardian.co.uk/lifeandstyle/2008/feb/04/shopping.retail | work=The Guardian | location=London | title=Do you speak Ikea? | first=Jon | last=Henley | date=February 4, 2008 | accessdate=May 5, 2010}}</ref> IKEA uses a sales technique called "bulla bulla" in which a bunch of items are purposefully jumbled in bins, to create the impression of volume, and therefore, inexpensiveness.<ref name=TNY /> |
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==={{Anchor|boklok}}Houses and flats=== |
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==Catalog== |
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IKEA has also expanded its product base to include flat-pack houses and apartments, in an effort to cut prices involved in a first-time buyer's home. The IKEA product, named BoKlok was launched in Sweden in 1996 in a joint venture with [[Skanska]]. Now working in the Nordic countries and in the UK, sites confirmed in England include London, [[Ashton-under-Lyne]], [[Leeds]], [[Gateshead]], [[Warrington]], Bristol and [[Liverpool]].<ref>{{cite news|url=http://shopping.guardian.co.uk/household/story/0,1587,1403793,00.html|title=Buying a house? Pick up a flatpack at Ikea|date=2 February 2005|work=The Guardian|location=London|first=Martin|last=Wainwright|access-date=5 May 2010|archive-date=17 May 2008|archive-url=https://web.archive.org/web/20080517044601/http://shopping.guardian.co.uk/household/story/0,1587,1403793,00.html|url-status=live}}</ref> |
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{{Main|IKEA Catalogue}} |
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[[File:Ikea2009 en-US.png|thumb|upright|2009 IKEA US catalog]] |
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IKEA publishes an annual [[Mail order|catalog]], first published in Swedish in 1951.<ref>{{cite web|title=IKEA History|url=http://www.ikea.com/ms/en_AU/about_ikea/the_ikea_way/history/1940_1950.html}}</ref>IKEA published a 197 million catalogues in 2010, in twenty languages and sixty-one editions.<ref name=TNY /> It is considered to be the main marketing tool of the retail giant, consuming 70% of the company's annual marketing budget.<ref>{{cite web|title=IKEA student info|url=http://www.ikea.com/ms/en_GB/about_ikea/press_room/student_info.html}}</ref> |
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====Solar PV systems==== |
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The catalog is distributed both in stores and by mail,<ref>{{cite web|title=IKEA FAQ |url=http://www.ikea.com/ms/en_US/customer_service/faq/faq.html#0100}}</ref> with most of it being produced by IKEA Communications AB in IKEA's hometown of [[Älmhult Municipality|Älmhult]], Sweden where IKEA operates the largest photo studio in northern Europe at 8,000 square metres.<ref>{{cite web|title=2003 IKEA Catalogue printable facts|url=http://www.ikea.com/ms/en_GB/about_ikea/press_room/thecatalogue.pdf|format=PDF}}</ref> The catalog itself is printed on chlorine-free paper of 10–15% post-consumer waste, and prints approximately 175 million copies worldwide annually,<ref>{{cite web |url= http://www.sweden.se/eng/Home/Lifestyle/Culture/Design/Reading/Why-Swedes-keep-a-cool-head-over-Ikea/ |title= Why Swedes keep a cool head over Ikea |work= [http://www.sweden.se sweden.se] |date= July 28, 2006 |accessdate=August 29, 2007}}</ref> more than 3 times as much as [[List of best-selling books|The Bible]].<ref>{{cite web |first= Martin |last= Roth |title= The Bible vs. the IKEA Catalogue – Which is Winning Hearts? |url=http://www.martinrothonline.com/MRCC23.htm |date= December 29, 2005 |accessdate=August 29, 2007}}</ref> |
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At the end of September 2013, the company announced that solar panel packages, so-called "residential kits", for houses will be sold at 17 UK stores by mid-2014. The decision followed a successful pilot project at the Lakeside IKEA store, whereby one [[photovoltaic system]] was sold almost every day. The solar [[CIGS panel]]s are manufactured by [[Solibro]], a German-based subsidiary of the Chinese company [[Hanergy]].<ref>{{cite news|title=Ikea to sell solar panels in UK stores |url=https://www.theguardian.com/environment/2013/sep/30/ikea-sell-solar-panels-uk-stores |access-date=1 October 2013 |newspaper=The Guardian |date=30 September 2013 |agency=Reuters |url-status=dead |archive-url=https://web.archive.org/web/20130930192635/http://www.theguardian.com/environment/2013/sep/30/ikea-sell-solar-panels-uk-stores |archive-date=30 September 2013 }}</ref><ref name="Solar IKEA 2013">{{cite web | url=https://news.yahoo.com/latest-appliance-ikea-solar-power-panels-060800233.html | title=The latest appliance from IKEA: Solar power panels | publisher=The Week Newspaper | date=1 October 2013 | access-date=1 October 2013 | author=Lobello, Carmel | archive-date=4 October 2013 | archive-url=https://web.archive.org/web/20131004180350/http://news.yahoo.com/latest-appliance-ikea-solar-power-panels-060800233.html | url-status=live }}</ref> By the end of 2014, IKEA began to sell Solibro's solar residential kits in the Netherlands and in Switzerland.<ref>{{cite web |quote=Residential kit for IKEA in the Netherlands and Switzerland |url=http://solibro-solar.com/en/company/about-us/ |title=The Solibro CIGS Technology |work=Solibro GmbH |access-date=20 January 2017 |archive-date=1 April 2017 |archive-url=https://web.archive.org/web/20170401185551/http://solibro-solar.com/en/company/about-us |url-status=dead }}</ref> In November 2015, IKEA ended its contract with [[Hanergy]] and in April 2016 started working with [[Solarcentury]] to sell solar panels in the United Kingdom.<ref>{{cite web|last1=Stoker|first1=Liam|title=Solarcentury lands IKEA 'Solar Shops' contract|url=http://www.solarpowerportal.co.uk/news/solarcentury_lands_ikea_solar_shops_contract_5239|website=solarpowerportal.co.uk|date=25 April 2016 |access-date=3 May 2016|ref=Solarcentury|archive-date=29 April 2016|archive-url=https://web.archive.org/web/20160429160651/http://www.solarpowerportal.co.uk/news/solarcentury_lands_ikea_solar_shops_contract_5239|url-status=live}}</ref> The deal would allow customers to be able to order panels online and at three stores before being expanded to all United Kingdom stores by the end of summer.<ref>{{Cite news|url=http://www.newsweek.com/ikea-starts-selling-solar-panels-uk-stores-452058|title=Ikea to start selling solar panels in U.K. stores|date=25 April 2016|newspaper=Newsweek|access-date=14 November 2016|archive-date=14 November 2016|archive-url=https://web.archive.org/web/20161114165158/http://www.newsweek.com/ikea-starts-selling-solar-panels-uk-stores-452058|url-status=live}}</ref> |
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====Furniture rental==== |
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According to Canadian broadcaster, [[CTV Television Network|CTV]], "IKEA's publications have developed an almost cult-like following online. Readers have found all kinds of strange tidbits, including mysterious cat pictures, apparent Mickey Mouse references and [[Bookseller/Diagram Prize for Oddest Title of the Year|weird books]] wedged into the many shelves that clutter the catalogues." |
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In April 2019, the company announced that it would begin test marketing a new concept, renting furniture to customers. One of the motivating factors was that inexpensive IKEA products were viewed as "disposable" and often ended up being scrapped after a few years of use. This was at a time when especially younger buyers said they wanted to minimize their impact on the environment. The company understood this view. In an interview, Jesper Brodin, the chief executive of Ingka Group (the largest franchisee of IKEA stores), commented that "climate change and unsustainable consumption are among the biggest challenges we face in society".<ref>{{cite news|date=6 April 2019|title=IKEA to test furniture rental in 30 markets as a greener alternative to flat-pack fare|newspaper=Financial Post|url=https://business.financialpost.com/news/retail-marketing/ikea-to-test-furniture-rental-in-30-markets|access-date=9 April 2019|quote=IKEA to test furniture rental in 30 markets as a greener alternative to flat-pack fare, Young consumers say they want to minimize their impact on the environment|archive-date=8 April 2019|archive-url=https://web.archive.org/web/20190408205542/https://business.financialpost.com/news/retail-marketing/ikea-to-test-furniture-rental-in-30-markets|url-status=live}}</ref> The other strategic objectives of the plan were to be more affordable and more convenient. The company said it would test the rental concept in all 30 markets by 2020, expecting it to increase the number of times a piece of furniture would be used before recycling.<ref>{{cite web|title=IKEA to test furniture rental in 30 countries|url=https://www.reuters.com/article/us-ikea-sustainability/ikea-to-test-furniture-rental-in-30-countries-idUSKCN1RF0WY|date=6 April 2019|work=Reuters|access-date=9 April 2019|quote=KAARST, Germany (Reuters), IKEA wants to roll out furniture rental to all its main markets in a bid to appeal to its increasingly environmentally conscious and transient customers.|archive-date=8 April 2019|archive-url=https://web.archive.org/web/20190408091838/https://www.reuters.com/article/us-ikea-sustainability/ikea-to-test-furniture-rental-in-30-countries-idUSKCN1RF0WY|url-status=live}}</ref> |
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===Restaurant and food markets=== |
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==IKEA Family (Loyalty Card)== |
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[[File:HK KTD 九龍灣 Kln Bay MegaBox mall shop 宜家傢俬 IKEA furniture in April 2022 Px3 31.jpg|thumb|An IKEA Bistro in Hong Kong]] |
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In common with some other retailers, IKEA has launched a [[loyalty card]] in some of its locations called "IKEA family". The card is free of charge and can be used to obtain discounts on a special range of products found in each IKEA store. In conjunction with the card, IKEA also publishes and sells a printed quarterly magazine titled ''IKEA Family Live'' which supplements the card and catalogue. The magazine is already printed in thirteen languages and an English edition for the United Kingdom was launched in February 2007. It is expected to have a subscription of over 500,000.<ref>{{cite web|author=Daniel Farey-Jones|title=Ikea to introduce UK magazine in February|url=http://www.brandrepublic.com/bulletins/media/article/567690/ikea-introduce-uk-magazine-february/}}</ref> |
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[[File:IKEA Food market in MegaBox 2017.jpg|thumb|Swedish Food Market in Hong Kong]] |
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[[File:IKEA Restaurant in Coquitlam.jpg|thumb|IKEA restaurant in [[Coquitlam]], British Columbia, Canada]] |
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[[File:IKEA-Sendai- Japan03.JPG|thumb|Swedish meatballs]] |
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[[File:IKEA_food_court_in_Santiago.jpg|thumb|An IKEA Bistro in [[Santiago]], Chile]] |
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The first IKEA store opened in 1958 with a small cafe that transitioned into a full-blown restaurant in 1960 that,<ref>{{cite web |title=Restaurants that make customers happy |url=https://ikeamuseum.com/en/digital/the-story-of-ikea/the-worlds-biggest-restaurant/ |access-date=20 June 2022 |website=IKEA Museum|archive-date=1 July 2022 |archive-url=https://web.archive.org/web/20220701163117/https://ikeamuseum.com/en/digital/the-story-of-ikea/the-worlds-biggest-restaurant/ |url-status=live }}</ref> until 2011, sold branded Swedish prepared specialist foods, such as meatballs, packages of [[gravy]], [[lingonberry jam]], various biscuits and crackers, and salmon and [[Smörgåskaviar|fish roe spread]]. The new label has a variety of items including chocolates, meatballs, jams, pancakes, salmon and various drinks.<ref>{{Cite news|url=http://www.columbusmonthly.com/lifestyle/20171114/short-order-ikea-restaurant|title=Short Order: Ikea Restaurant|last=Trask|first=Bailey|work=Columbus Monthly|access-date=1 December 2017|archive-date=8 August 2020|archive-url=https://web.archive.org/web/20200808222803/https://www.columbusmonthly.com/lifestyle/20171114/short-order-ikea-restaurant|url-status=live}}</ref><ref>{{cite web|url=https://www.bizjournals.com/milwaukee/news/2017/11/30/ikea-store-takes-shape-in-oak-creek-heres-how-it.html|title=Ikea store takes shape in Oak Creek: Here's how it looks from the air—Slideshow – Milwaukee – Milwaukee Business Journal|website=The Business Journals|access-date=1 December 2017|archive-date=12 February 2020|archive-url=https://web.archive.org/web/20200212233422/https://www.bizjournals.com/milwaukee/news/2017/11/30/ikea-store-takes-shape-in-oak-creek-heres-how-it.html|url-status=live}}</ref> |
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Although the cafes primarily serve Swedish food, the menu varies based on the culture, food and location of each store.<ref>{{Cite news|url=https://economictimes.indiatimes.com/industry/services/retail/what-no-meatballs-how-ikea-caters-to-different-global-tastes/articleshow/65331281.cms|title=What, no meatballs? How Ikea caters to different global tastes|date=9 August 2018|work=The Economic Times|access-date=27 April 2020|archive-date=5 January 2019|archive-url=https://web.archive.org/web/20190105133058/https://economictimes.indiatimes.com/industry/services/retail/what-no-meatballs-how-ikea-caters-to-different-global-tastes/articleshow/65331281.cms|url-status=live}}</ref> With restaurants in 38 countries, the menu often incorporates local dishes, including shawarma in Saudi Arabia, poutine in Canada, macarons in France, and gelato in Italy.<ref>{{cite web|url=https://www.businessinsider.com/ikea-food-court-menus-around-the-world-pictures-2019-6|title=IKEA food courts have different menus across the world. Take a look at 11 cuisines you can get outside the US.|last=Ciment|first=Shoshy|website=Business Insider|access-date=27 April 2020|archive-date=20 June 2019|archive-url=https://web.archive.org/web/20190620130312/https://www.businessinsider.com/ikea-food-court-menus-around-the-world-pictures-2019-6|url-status=live}}</ref> In Indonesia, the Swedish meatballs recipe is changed to accommodate the country's halal requirements.<ref>{{cite web|url=https://www.india.com/business/ikea-opens-first-store-today-know-what-is-unique-about-its-furniture-food-and-more-3213426/|title=IKEA Opens First Showroom in India Today|date=9 August 2018|website=India News, Breaking News, Entertainment News {{!}} India.com|access-date=27 April 2020|archive-date=10 August 2018|archive-url=https://web.archive.org/web/20180810181038/https://www.india.com/business/ikea-opens-first-store-today-know-what-is-unique-about-its-furniture-food-and-more-3213426/|url-status=live}}</ref> Stores in Israel sell [[kosher]] food under rabbinical supervision.<ref>{{cite web|url=http://www.badatz.biz/biz/%D7%90%D7%99%D7%A7%D7%90%D7%94-%D7%A8%D7%90%D7%A9%D7%95%D7%9F-%D7%9C%D7%A6%D7%99%D7%95%D7%9F/|title=Badatz Beit Yosef Restaurant Listing|publisher=Badatz.com|access-date=19 September 2014|url-status=dead|archive-url=https://web.archive.org/web/20150416054415/http://www.badatz.biz/biz/%D7%90%D7%99%D7%A7%D7%90%D7%94-%D7%A8%D7%90%D7%A9%D7%95%D7%9F-%D7%9C%D7%A6%D7%99%D7%95%D7%9F/|archive-date=16 April 2015}}</ref> The kosher restaurants are separated into dairy and meat areas.<ref>{{cite web|url=https://www.timesofisrael.com/courting-ultra-orthodox-consumers-ikea-turns-to-kosher-inspiration/|title=Courting ultra-Orthodox consumers, IKEA turns to kosher inspiration|last=Immergluck|first=Ira Tolchin|website=The Times of Israel|access-date=27 April 2020|archive-date=1 December 2019|archive-url=https://web.archive.org/web/20191201145536/https://www.timesofisrael.com/courting-ultra-orthodox-consumers-ikea-turns-to-kosher-inspiration/|url-status=live}}</ref> |
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In many locations, the IKEA restaurants open daily before the rest of the store and serve breakfast.{{citation needed|date=April 2020}}<ref>{{Cite news |last=Valverde |first=Miriam |date=April 28, 2016 |title=Ikea redesigns restaurants as shoppers clamor for food |url=https://www.sun-sentinel.com/2016/04/28/ikea-redesigns-restaurants-as-shoppers-clamor-for-food/ |access-date=July 3, 2024 |work=South Florida Sun Sentinel}}</ref> All food products are based on Swedish recipes and traditions. Food accounted for 5% of IKEA's sales by 2019.<ref>{{cite news |title=IKEA to start serving salad grown at its stores |url=https://www.reuters.com/article/us-ikea-sustainability/ikea-to-start-serving-salad-grown-at-its-stores-idUSKCN1RG0YE |access-date=4 April 2019 |work=[[Reuters]] |date=4 April 2019 |archive-date=8 November 2020 |archive-url=https://web.archive.org/web/20201108025359/https://www.reuters.com/article/us-ikea-sustainability/ikea-to-start-serving-salad-grown-at-its-stores-idUSKCN1RG0YE |url-status=live }}</ref> |
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IKEA sells plant-based meatballs made from potatoes, apples, pea protein, and oats in all of its stores.<ref>{{cite web|url=https://www.theverge.com/2020/2/27/21155742/ikea-meat-free-plant-ball-meatballs-europe-launch-august-2020|title=Ikea's new meatless meatballs are coming to Europe in August|date=27 February 2020|access-date=27 February 2020|archive-date=27 February 2020|archive-url=https://web.archive.org/web/20200227133103/https://www.theverge.com/2020/2/27/21155742/ikea-meat-free-plant-ball-meatballs-europe-launch-august-2020|url-status=live}}</ref> According to United States journalist [[Avery Yale Kamila]], IKEA began testing its plant-based meatballs in 2014, then launched the plant-based meatballs in 2015 and began testing [[Vegetarian hot dog|vegan hot dogs]] in 2018.<ref>{{cite web |date=9 May 2018 |title=Customers want vegan food, and national restaurants are responding |url=https://www.pressherald.com/2018/05/09/customers-want-vegan-food-and-national-restaurants-are-responding/ |access-date=15 June 2022 |website=Press Herald |archive-date=15 June 2022 |archive-url=https://web.archive.org/web/20220615181207/https://www.pressherald.com/2018/05/09/customers-want-vegan-food-and-national-restaurants-are-responding/ |url-status=live }}</ref><ref>{{cite web |last=Kamila |first=Avery Yale |date=25 June 2014 |title=Chipotle, IKEA mainstreaming meatless meals |url=https://www.pressherald.com/2014/06/25/chipotle-ikea-mainstreaming-meatless-meals/ |access-date=15 June 2022 |website=Press Herald |archive-date=15 June 2022 |archive-url=https://web.archive.org/web/20220615181215/https://www.pressherald.com/2014/06/25/chipotle-ikea-mainstreaming-meatless-meals/ |url-status=live }}</ref><ref>{{cite web |last=Edwards |first=Jess |date=19 February 2018 |title=Vegetarian hot dogs might be coming to Ikea |url=https://www.cosmopolitan.com/uk/worklife/a18226925/ikea-vegetarian-hot-dog/ |access-date=15 June 2022 |website=Cosmopolitan|archive-date=15 June 2022 |archive-url=https://web.archive.org/web/20220615181558/https://www.cosmopolitan.com/uk/worklife/a18226925/ikea-vegetarian-hot-dog/ |url-status=live }}</ref> In 2019, journalist James Hansen reported in [[Eater London]] that IKEA would only sell vegetarian food at Christmas time.<ref>{{cite web |last=Hansen |first=James |date=25 October 2019 |title=Ikea Shelves Meat for Christmas |url=https://london.eater.com/2019/10/25/20930582/ikea-food-menu-christmas-2019-vegan |access-date=15 June 2022 |website=Eater London|archive-date=26 June 2022 |archive-url=https://web.archive.org/web/20220626011504/https://london.eater.com/2019/10/25/20930582/ikea-food-menu-christmas-2019-vegan |url-status=live }}</ref> |
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===Småland=== |
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Every store has a children's [[play area]], named Småland (Swedish for ''small lands''; it is also the Swedish province of [[Småland]] where founder Kamprad was born). Parents drop off their children at a gate to the playground, and pick them up after they arrive at another entrance. In some stores, parents are given free [[pager]]s by the on-site staff, which the staff can use to summon parents whose children need them earlier than expected; in others, staff summon parents through announcements over the in-store public address system or by calling them on their mobile phones.<ref>{{Cite news|url=https://www.nytimes.com/2009/06/11/garden/11ikea.html|title=A Cheap Date, With Child Care by Ikea|last=Higgins|first=Michelle|date=10 June 2009|work=The New York Times|access-date=19 December 2017|issn=0362-4331|archive-date=23 November 2021|archive-url=https://web.archive.org/web/20211123024203/https://www.nytimes.com/2009/06/11/garden/11ikea.html|url-status=live}}</ref> The largest Småland play area is located at the IKEA store in [[Navi Mumbai]], India.<ref>{{cite news |last1=Dec 18 |first1=B. B. Nayak / TNN / Updated |title=IKEA in Navi Mumbai: IKEA opens store in Navi Mumbai {{!}} Navi Mumbai News – Times of India |url=https://timesofindia.indiatimes.com/city/navi-mumbai/ikea-opens-store-in-navi-mumbai/articleshow/79792536.cms |website=The Times of India |access-date=27 December 2020|archive-date=18 December 2020 |archive-url=https://web.archive.org/web/20201218080857/https://timesofindia.indiatimes.com/city/navi-mumbai/ikea-opens-store-in-navi-mumbai/articleshow/79792536.cms |url-status=live }}</ref> Some of these were closed down due to the COVID-19 pandemic. |
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=== IKEA Preowned === |
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In August 2024, Ikea announced it would be trialing an on-line marketplace where customers can connect to buy and sell pre-owned items made by Ikea. |
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The marketplace, called Ikea Preowned, would run from August until December 2024 and be centred on the cities of Oslo, Norway and Madrid, Spain.<ref>{{Cite web |last=PYMNTS |date=2024-08-26 |title=Ikea Tests Appetite for Secondhand Furniture With 'Preowned' Marketplace |url=https://www.pymnts.com/news/retail/2024/ikea-tests-appetite-for-secondhand-furniture-with-preowned-marketplace/ |access-date=2024-08-26 |website=PYMNTS.com |language=en-US}}</ref><ref>{{Cite news |title=Ikea launches secondhand marketplace to compete with eBay |url=https://www.ft.com/content/4b18236f-f2f0-43eb-bb65-5f8d2f30a734}}</ref> |
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===Other ventures=== |
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[[File:MEGA3.jpg|thumb|A [[MEGA Family Shopping Centre]] in Russia]] |
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Until 28 September 2023, IKEA owned & operated the [[MEGA Family Shopping Centre]] chain in Russia. Its operations have since been sold to [[Gazprombank]].<ref>{{Cite news|url= https://uk.finance.yahoo.com/news/gazprombank-buys-ikea-stores-owner-071615719.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAD7OA8ionya8va3x9_HrdAI4nvkJzpUS6OgiBsiboSzAIsg5PW0Z_xyNnaIZu9OAQgvEzp9wZCcWgv3K_tv5TuJNQM21-Sjvynl0pkYxg4qBwbPcGgA_ezVjyy2B69Q9jLmZxepxVfgAzH6gjFH2BZk87HE5Lky631dgTmAMp0O1|title=Gazprombank buys Russia MEGA shopping centres from IKEA affiliated business |
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|work=yahoo! Finance|access-date=21 October 2023}}</ref> |
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On 8 August 2008, IKEA UK launched a [[Mobile virtual network operator|virtual mobile phone network]] called [[IKEA Family Mobile]], which ran on [[T-Mobile International AG|T-Mobile]].<ref>{{cite web|last1=Milmo|first1=Dan|title=Ikea launches ready-made mobile phone service|url=https://www.theguardian.com/technology/2008/aug/04/telecoms.ikea|website=[[The Guardian]]|access-date=11 August 2014|date=4 August 2014|archive-date=19 March 2014|archive-url=https://web.archive.org/web/20140319001042/http://www.theguardian.com/technology/2008/aug/04/telecoms.ikea|url-status=live}}</ref> At launch it was the cheapest [[Prepay mobile phone|pay-as-you-go]] network in the UK.<ref>{{cite web|title=T-Mobile signs Ikea MVNO|url=http://www.mobilenewscwp.co.uk:80/News/95182/tmobile_signs_ikea_mvno.html|access-date=12 August 2009|archive-url=https://web.archive.org/web/20080808103148/http://www.mobilenewscwp.co.uk/News/95182/tmobile_signs_ikea_mvno.html|archive-date=8 August 2008|date=4 August 2008|url-status=dead}}</ref><ref>{{cite web|title=T-Mobile " the network behind IKEA Family Mobile, the UK's newest mobile service|url=http://www.opt-development.co.uk/press-office/release.php?id=224|access-date=12 August 2009|archive-url=https://web.archive.org/web/20100129023642/http://www.opt-development.co.uk/press-office/release.php?id=224|archive-date=29 January 2010|date=3 August 2008}}</ref> In June 2015 the network announced that its services would cease to operate from 31 August 2015.<ref>{{cite web|title=Coms Mobile / Your Family Mobile closure on 31st August 2015|url=http://www.yourfamilymobile.co.uk/images/Coms%20Mobile%20closure%20FAQs.pdf|access-date=19 November 2017|archive-url=https://web.archive.org/web/20150922043136/http://www.yourfamilymobile.co.uk/images/Coms%20Mobile%20closure%20FAQs.pdf|archive-date=22 September 2015|url-status=dead}}</ref> |
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{{As of|2012}}, IKEA has a joint venture with [[TCL Corporation|TCL]] to provide Uppleva integrated HDTV and entertainment system products.<ref>{{cite news|url=https://www.reuters.com/article/2012/04/17/us-ikea-electronics-idUSBRE83G04R20120417|title=IKEA moves into consumer electronics with China venture|first=Anna |last=Ringstrom|work=Reuters|date=17 April 2012|access-date=1 July 2017|archive-date=24 September 2015|archive-url=https://web.archive.org/web/20150924163510/http://www.reuters.com/article/2012/04/17/us-ikea-electronics-idUSBRE83G04R20120417|url-status=dead}}</ref><ref>{{cite news|url=http://www.businessweek.com/ap/2012-04/D9U6OBFG0.htm |title=IKEA to sell TVs integrated in its furniture |first=Louise |last=Nordstom |date=17 April 2012 |agency=Associated Press |work=Bloomberg Businessweek |url-status=dead |archive-url=https://web.archive.org/web/20120427111745/http://www.businessweek.com/ap/2012-04/D9U6OBFG0.htm |archive-date=27 April 2012 }}</ref> |
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In mid-August 2012, the company announced that it would establish a chain of 100 economy hotels in Europe but, unlike its few existing hotels in Scandinavia, they would not carry the IKEA name, nor would they use IKEA furniture and furnishings – they would be operated by an unnamed international group of hoteliers.<ref>{{cite news|url=http://www.nydailynews.com/life-style/ikea-launch-chain-budget-hotels-europe-article-1.1137519|title=IKEA to launch chain of budget hotels in Europe|newspaper=Daily News|location=New York |date=16 August 2012|access-date=28 January 2013|archive-date=26 May 2013|archive-url=https://web.archive.org/web/20130526040733/http://www.nydailynews.com/life-style/ikea-launch-chain-budget-hotels-europe-article-1.1137519|url-status=live}}</ref> As of 30 April 2018, however, the company owned only a single hotel, the IKEA Hotell in Älmhult, Sweden. |
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It was previously planning to open another one, in [[New Haven, Connecticut]], United States, after converting the historic Pirelli Building. The company received approval for the concept from the city's planning commission in mid-November 2018; the building was to include 165 rooms and the property would offer 129 dedicated parking spaces. Research in April 2019 provided no indication that the hotel had been completed as of that time.<ref>{{cite news|date=30 April 2018|title=Is IKEA about to open its first hotel outside of Sweden?|newspaper=The Daily Telegraph|url=https://www.telegraph.co.uk/travel/destinations/north-america/united-states/articles/could-a-new-ikea-hotel-be-opening-in-the-united-states/ |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/travel/destinations/north-america/united-states/articles/could-a-new-ikea-hotel-be-opening-in-the-united-states/ |archive-date=11 January 2022 |url-access=subscription |url-status=live|access-date=9 April 2019|quote=Is IKEA about to open its first hotel outside of Sweden?}}{{cbignore}}</ref><ref>{{cite news|date=15 November 2018|title=Pirelli Hotel Plan Survives Surprise Attack|newspaper=Independent|url=https://www.newhavenindependent.org/index.php/archives/entry/pirelli_hotel/|access-date=9 April 2019|quote=The approved plans call for a 165-room hotel, 129 dedicated parking spaces, 200 square feet of bicycle storage in the bottom of the IKEA sign, stormwater management, and landscaping improvements, a reconfiguration of IKEA's existing 1,241-space surface lot, and the repair and cleaning up of the building's facade. The proposal does not call for any changes to be made to the building's exterior.|archive-date=18 May 2019|archive-url=https://web.archive.org/web/20190518090438/https://www.newhavenindependent.org/index.php/archives/entry/pirelli_hotel/|url-status=live}}</ref> The building was then sold to Connecticut architect and developer Becker + Becker for $1.2{{nbsp}}million.<ref>{{cite web |title=360 State Builder Buys IKEA Hotel Site |url=https://www.newhavenindependent.org/article/ikea_hotel_site |access-date=10 March 2022 |website=New Haven Independent |date=6 January 2020|archive-date=10 March 2022 |archive-url=https://web.archive.org/web/20220310023942/https://www.newhavenindependent.org/article/ikea_hotel_site |url-status=live }}</ref> Opening in 2022 under [[Pirelli Tire Building|Hotel Marcel]], it is managed by Charlestowne Hotels and became part of Hilton's Tapestry Collection.<ref>{{cite web |title=How an Iconic Brutalist Building Became One of the Most Sustainable Hotels in the U.S. |url=https://www.buildings.com/articles/43365/hotel-marcel-historic-net-zero |access-date=10 March 2022 |website=Buildings |date=16 February 2022|archive-date=13 March 2022 |archive-url=https://web.archive.org/web/20220313193316/https://www.buildings.com/articles/43365/hotel-marcel-historic-net-zero |url-status=live }}</ref><ref>{{cite web |title=Hotel Marcel opening: Look inside the country's first net-zero energy hotel |url=https://www.boston.com/travel/travel/2022/03/08/hotel-marcel-opening/ |access-date=10 March 2022 |website=The Boston Globe|archive-date=9 March 2022 |archive-url=https://web.archive.org/web/20220309205639/https://www.boston.com/travel/travel/2022/03/08/hotel-marcel-opening/ |url-status=live }}</ref> |
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From 2016 to 2018, IKEA sold a commuter [[belt-driven bicycle]], the Sladda.<ref>{{cite web |last=Small |first=Andrew |date=5 June 2018 |title=Rest In Peace, Ikea Bike |url=https://www.bloomberg.com/news/articles/2018-06-05/why-ikea-recalled-its-sladda-bikes |access-date=20 July 2022 |website=bloomberg.com |archive-date=8 August 2022 |archive-url=https://web.archive.org/web/20220808233048/https://www.bloomberg.com/news/articles/2018-06-05/why-ikea-recalled-its-sladda-bikes |url-status=live }}</ref> |
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In September 2017, IKEA announced they would be acquiring the UD company [[TaskRabbit]]. The deal, completed later that year, has TaskRabbit operating as an independent company.<ref>{{cite news |url=https://www.bostonglobe.com/business/2017/09/28/assembly-required-ikea-buy-services-site-taskrabbit/0hEMLoF7bxV42i6gzpjqvO/story.html |title=No assembly required? Ikea to buy services site TaskRabbit |work=[[The Boston Globe]] |agency=Associated Press |date=28 September 2017 |access-date=28 September 2017 |archive-date=28 September 2017 |archive-url=https://web.archive.org/web/20170928205819/http://www.bostonglobe.com/business/2017/09/28/assembly-required-ikea-buy-services-site-taskrabbit/0hEMLoF7bxV42i6gzpjqvO/story.html |url-status=live }}</ref> |
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In March 2020, IKEA announced that it had partnered with [[Pizza Hut]] Hong Kong on a joint venture. IKEA launched a new side table called SÄVA. The table, designed to resemble a [[pizza saver]], would be boxed in packaging resembling a [[pizza box]], and the building instructions included a suggestion to order a Swedish meatball pizza from Pizza Hut, which would contain the same meatballs served in IKEA restaurants.<ref>{{cite news|url=https://www.housebeautiful.com/about/a31401101/ikea-pizza-hut-table/|title=IKEA and Pizza Hut Collabed to Make a Table Inspired by the Stands in Pizza Boxes|last=Allen|first=Kelly|date=11 March 2020|work=[[House Beautiful]]|access-date=17 March 2020|archive-date=17 March 2020|archive-url=https://web.archive.org/web/20200317192117/https://www.housebeautiful.com/about/a31401101/ikea-pizza-hut-table/|url-status=live}}</ref><ref>{{cite news|url=https://metro.co.uk/2020/03/18/ikea-pizza-hut-team-create-three-legged-table-looks-just-like-saver-pizza-box-12415886/|title=Ikea and Pizza Hut team up to create three-legged table that looks just like the 'saver' in your pizza box and meatball pizza|last=Lindsay|first=Jessica|date=18 March 2020|work=[[Metro (British newspaper)|Metro]]|access-date=23 July 2013|archive-date=19 March 2020|archive-url=https://web.archive.org/web/20200319183725/https://metro.co.uk/2020/03/18/ikea-pizza-hut-team-create-three-legged-table-looks-just-like-saver-pizza-box-12415886/|url-status=live}}</ref> |
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In April 2020, IKEA acquired AI imaging startup Geomagical Labs.<ref>{{cite web|url=https://www.forbes.com/sites/kashyapkompella/2020/04/13/ikea-acquires-geomagical-labs-top-takeaways-for-retailers-and-startups/|title=IKEA Acquires Geomagical Labs: Top Takeaways For Retailers And Startups|last=Kompella|first=Kashyap|website=Forbes|access-date=17 April 2020|archive-date=17 April 2020|archive-url=https://web.archive.org/web/20200417120312/https://www.forbes.com/sites/kashyapkompella/2020/04/13/ikea-acquires-geomagical-labs-top-takeaways-for-retailers-and-startups/|url-status=live}}</ref><ref>{{cite web|url=https://techcrunch.com/2020/04/02/ikea-acquires-ai-imaging-startup-geomagical-labs-to-supercharge-room-visualisations/|title=Ikea acquires AI imaging startup Geomagical Labs to supercharge room visualisations|website=TechCrunch|date=2 April 2020|access-date=17 April 2020|archive-date=21 April 2023|archive-url=https://web.archive.org/web/20230421205338/https://techcrunch.com/2020/04/02/ikea-acquires-ai-imaging-startup-geomagical-labs-to-supercharge-room-visualisations/|url-status=live}}</ref> |
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In July 2020, IKEA opened a [[concept store]] in the [[Harajuku]] district of Tokyo, Japan, where it launched its first ever [[Apparel|apparel line]].<ref>{{cite news|url=https://www.timeout.com/tokyo/news/ikea-is-releasing-its-first-ever-apparel-line-in-harajuku-072120|title=Ikea is releasing its first-ever apparel line in Harajuku|last=Steen|first=Emma|date=21 July 2020|work=[[Time Out (magazine)|Time Out]]|access-date=23 July 2020|archive-date=22 July 2020|archive-url=https://web.archive.org/web/20200722103837/https://www.timeout.com/tokyo/news/ikea-is-releasing-its-first-ever-apparel-line-in-harajuku-072120|url-status=live}}</ref> |
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Ingka Centres, IKEA's malls division, announced in December 2021 that it would open two malls, anchored by IKEA stores, in [[Gurgaon|Gurugram]] and [[Noida]] in India at a cost of around {{INRConvert|9000|c}}. Both malls are expected to open by 2025.<ref>{{Cite news|last1=Jamkhandikar|first1=Shilpa|last2=Monnappa|first2=Chandini|date=8 December 2021|title=IKEA malls business to invest around $1.2 bln in India – executive|work=Reuters|url=https://www.reuters.com/business/retail-consumer/ikea-malls-business-invest-around-928-mln-india-top-executive-says-2021-12-08/|access-date=17 January 2022|archive-date=17 January 2022|archive-url=https://web.archive.org/web/20220117224017/https://www.reuters.com/business/retail-consumer/ikea-malls-business-invest-around-928-mln-india-top-executive-says-2021-12-08/|url-status=live}}</ref> |
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In 2016, IKEA Canada partnered with the Setsuné Indigenous Fashion Incubator, co-founded by [[Sage Paul]], to design and produce the collection ÅTERSTÄLLA, which means to restore, heal, or redecorate, and it was made entirely from salvaged Ikea textiles, reflecting the traditional Indigenous value to "use everything".<ref>{{Cite web |last=Braun |first=Jennifer |date=6 June 2017 |title=Ikea Canada partners with Indigenous Fashion Incubator |url=https://ww.fashionnetwork.com/news/ikea-canada-partners-with-indigenous-fashion-incubator,835653.html |website=FASHION Network}}</ref> |
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==Corporate structure== |
==Corporate structure== |
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{{Main|Stichting INGKA Foundation| |
{{Main|Stichting INGKA Foundation|Ikano|Ingvar Kamprad}} |
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{{IKEA ownership chart}} |
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[[File:IKEA-Athens01.jpg|thumb|IKEA in [[Athens]], Greece]] |
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[[File:Rom vorstadt 04.jpg|thumb|IKEA Anagnina in [[Rome]], Italy]] |
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[[File:Ikea in dhahran saudi arabia.JPG|thumb|IKEA in [[Dhahran]], Saudi Arabia]] |
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[[File:IKEA.JPG|thumb|IKEA Twin Cities in [[Bloomington, Minnesota]], USA]] |
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[[File:903. Ikea Israel near Nethanya.jpg|thumb|IKEA store at [[Netanya]], Israel, before a fire burned down the store.]] |
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IKEA is owned and operated by a complicated array of [[not-for-profit]] and [[for-profit]] corporations. The corporate structure is divided into two main parts: operations and franchising. Most of IKEA's operations, including the management of the majority of its stores, the design and manufacture of its furniture, and purchasing and supply functions are overseen by INGKA Holding, a private, for-profit Dutch company. Of the IKEA stores in 36 countries, 235 are run by the INGKA Holding. The remaining 30 stores are run by franchisees outside of the INGKA Holding.<ref>{{cite web|url=http://www.ikea-group.ikea.com/corporate/about_ikea/index.html|title=IKEA Group corporate site: about us}}</ref> |
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IKEA is owned and operated by a series of [[not-for-profit]] and [[for-profit]] corporations. The corporate structure is divided into two main parts: operations and franchising. |
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INGKA Holding is not an independent company, but is wholly owned by the [[Stichting Ingka Foundation]], which Kamprad established in 1982 in the Netherlands as a tax-exempt, not-for-profit [[Foundation (charity)|foundation]]. The Ingka Foundation is controlled by a five-member executive committee that is chaired by Kamprad and includes his wife and attorney.<ref name="Economist, May 11, 2006" /> |
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[[INGKA Holding]] B.V., based in the Netherlands, owns the Ingka Group, which takes care of the centres, retails, customer fulfillment, and all the other services related to IKEA products. The IKEA brand is owned and managed by [[Inter IKEA Systems]] B.V., based in the Netherlands, owned by [[Inter IKEA Holding]] B.V. Inter IKEA Holding is also in charge of design, manufacturing and supply of IKEA products. |
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While most IKEA stores operate under the direct purview of Ingka Holding and the Ingka Foundation, the IKEA trademark and concept is owned by an entirely separate Dutch company, '''Inter IKEA Systems.''' Every IKEA store, including those run by Ingka Holding, pays a [[franchise fee]] of 3% of the revenue to Inter IKEA Systems. The ownership of Inter IKEA Systems is exceedingly complicated and, ultimately, uncertain. Inter IKEA Systems is owned by Inter IKEA Holding, a company registered in Luxembourg. Inter IKEA Holding, in turn, belongs to an identically named company in the former [[Netherlands Antilles]] that is run by a trust company based in [[Curaçao]].<ref name="Economist, May 11, 2006" /> In 2009, the company in Curaçao was liquidated. The company responsible for this liquidation traces back to the [[Interogo Foundation]] in Liechtenstein<ref name="SVT, January 26, 2011" /> Ingvar Kamprad has confirmed that this foundation owns Inter IKEA Holding S.A. in Luxembourg and is controlled by the Kamprad family.<ref name="SVT.se, January 26, 2011" /> |
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Inter IKEA Systems is owned by Inter IKEA Holding BV, a company registered in the Netherlands, formerly registered in Luxembourg (under the name Inter IKEA Holding SA). Inter IKEA Holding, in turn, is owned by the Interogo Foundation, based in Liechtenstein.<ref name="Economist, May 11, 2006">{{Cite news|url=http://www.economist.com/business/displaystory.cfm?story_id=6919139|title=Flat-pack accounting|date=11 May 2006|newspaper=[[The Economist]]|access-date=10 June 2009|archive-date=24 May 2012|archive-url=https://archive.today/20120524/http://www.economist.com/business/displaystory.cfm?story_id=6919139|url-status=live}}</ref><ref>{{cite web|url=http://www.inter.ikea.com/en/about-us/Our-owner/|title=Our owner|date=1 September 2016|website=Inter IKEA Group|access-date=6 January 2017|archive-date=11 March 2018|archive-url=https://web.archive.org/web/20180311192646/http://www.inter.ikea.com/en/about-us/Our-owner/|url-status=live}}</ref> In 2016, the INGKA Holding sold its design, manufacturing and logistics subsidiaries to Inter IKEA Holding.<ref name=":0">{{cite web|url=https://www.reuters.com/article/us-ikea-restructuring-idUSKCN0XC0IA|title=IKEA finalizing its biggest overhaul in decades|date=15 April 2016|work=Reuters|access-date=6 January 2016|archive-date=18 June 2019|archive-url=https://web.archive.org/web/20190618105037/https://www.reuters.com/article/us-ikea-restructuring-idUSKCN0XC0IA|url-status=live}}</ref> |
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In Australia, IKEA is operated by two companies. Stores located on the East Coast including [[Queensland]], New South Wales, and [[Victoria (Australia)|Victoria]] are owned by [[INGKA Holding]]. Stores elsewhere in the country including South Australia and Western Australia are owned by Cebas Pty Ltd.<ref>{{cite web|url=http://cebas.ikea.com.au/Template3.asp?page_id=63970300051041&se_id=22&site_id=30005|title=Disclaimer|author=Cebas Pty Ltd|accessdate=April 10, 2007}}</ref> Like elsewhere, all stores are operated under a franchise agreement with Inter IKEA Systems.<ref>''[[The Economist]]'', "[http://www.economist.com/node/18229400?story_id=18229400 The secret of IKEA's success]", 24 February 2011, pp. 67–68.</ref> |
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In June 2013, Ingvar Kamprad resigned from the board of Inter IKEA Holding SA and his youngest son Mathias Kamprad replaced Per Ludvigsson as the chairman of the holding company. Following his decision to step down, the 87-year-old founder explained, "I see this as a good time for me to leave the board of Inter IKEA Group. By that we are also taking another step in the generation shift that has been ongoing for some years."<ref name=":1" /> After the 2016 company restructure, Inter IKEA Holding SA no longer exists, having reincorporated in the Netherlands. Mathias Kamprad became a board member of the Inter IKEA Group and the Interogo Foundation.<ref>{{cite web|url=http://www.di.se/nyheter/ingvar-kamprads-son-bort-fran-maktposition/|title=Ingvar Kamprads son bort från maktposition|date=17 October 2016|website=Dagens Industri|access-date=6 January 2017|archive-date=5 January 2017|archive-url=https://web.archive.org/web/20170105083600/http://www.di.se/nyheter/ingvar-kamprads-son-bort-fran-maktposition/|url-status=live}}</ref> Mathias and his two older brothers, who also have leadership roles at IKEA, work on the corporation's overall vision and long-term strategy.<ref name=":1">{{cite news|title=IKEA's new chairman likes PAX wardrobes, and that's about all we know|url=http://qz.com/91159/ikeas-new-chairman-likes-pax-wardrobes-and-thats-about-all-we-know/|access-date=6 June 2013|newspaper=Quartz|date=5 June 2013|author=Gina Chon|archive-date=2 July 2015|archive-url=https://web.archive.org/web/20150702144203/http://qz.com/91159/ikeas-new-chairman-likes-pax-wardrobes-and-thats-about-all-we-know/|url-status=live}}</ref> |
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The IKEA food concessions which operate in IKEA stores are still owned directly by the Kamprad family which provides a major part of the family's income. |
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=== |
===Control by Kamprad=== |
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[[File:Ingvar Kamprad Haparanda June 2010.jpg|thumb|upright|The late [[Ingvar Kamprad]], founder of IKEA]] |
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The net profit of IKEA Group (which does not include Inter IKEA systems) in fiscal year 2009 (after paying franchise fees to Inter IKEA systems) was €2.538 billion on sales of €21.846 billion. Because INGKA Holding is owned by the nonprofit INGKA Foundation, none of this profit is taxed. The foundation's nonprofit status also means that the Kamprad family cannot reap these profits directly, but the Kamprads do collect a portion of IKEA sales profits through the franchising relationship between INGKA Holding and Inter IKEA Systems. |
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Along with helping IKEA make a non-taxable profit, IKEA's complicated corporate structure allowed Kamprad to maintain tight control over the operations of INGKA Holding, and thus the operation of most IKEA stores. The INGKA Foundation's five-person executive committee was chaired by Kamprad. It appoints a board of INGKA Holding, approves any changes to INGKA Holding's bylaws, and has the right to preempt new share issues. If a member of the executive committee quits or dies, the other four members appoint their replacement. |
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Inter IKEA Systems collected €631 million of [[franchise fee]]s in 2004, but reported pre-tax profits of only €225 million in 2004. One of the major pre-tax expenses that Inter IKEA systems reported was €590 million of "other operating charges". IKEA has refused to explain these charges, but Inter IKEA Systems appears to make large payments to I.I. Holding, another Luxembourg-registered group that, according to ''[[The Economist]],'' "is almost certain to be controlled by the Kamprad family." I.I. Holding made a profit of €328 million in 2004. |
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In Kamprad's absence, the foundation's bylaws include specific provisions requiring it to continue operating the INGKA Holding group and specifying that shares can be sold only to another foundation with the same objectives as the INGKA Foundation.<ref name="Economist, May 11, 2006" /> |
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===Financial information=== |
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[[File:IKEA Delft 2.JPG|thumb|IKEA Concept Centre in [[Delft]] – the head office of Inter IKEA Systems B.V. which owns the IKEA trademark and concept]] |
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The net profit of IKEA Group (which does not include Inter IKEA systems) in fiscal year 2009 (after paying franchise fees to Inter IKEA systems) was €2.538{{nbsp}}billion on sales of €21.846{{nbsp}}billion. Because INGKA Holding is owned by the non-profit INGKA Foundation, none of this profit is taxed. The foundation's nonprofit status also means that the Kamprad family cannot reap these profits directly, but the Kamprads do collect a portion of IKEA sales profits through the franchising relationship between INGKA Holding and Inter IKEA Systems. |
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As a franchisee, the Ingka Group pays 3% of [[royalties]] to Inter IKEA Systems.<ref name="greens-efa.eu" /><ref name=":6" /> Inter IKEA Systems collected €631{{nbsp}}million of [[franchise fee]]s in 2004 but reported pre-tax profits of only €225{{nbsp}}million in 2004. One of the major pre-tax expenses that Inter IKEA systems reported was €590{{nbsp}}million of "other operating charges". IKEA has refused to explain these charges, but Inter IKEA Systems appears to make large payments to I.I. Holding, another Luxembourg-registered group that, according to ''[[The Economist]],'' "is almost certain to be controlled by the Kamprad family". I.I. Holding made a profit of €328{{nbsp}}million in 2004. |
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In 2004, the Inter IKEA group of companies and I.I. Holding reported combined profits of €553m and paid €19m in taxes, or approximately 3.5 percent.<ref name="Economist, May 11, 2006" /> |
In 2004, the Inter IKEA group of companies and I.I. Holding reported combined profits of €553m and paid €19m in taxes, or approximately 3.5 percent.<ref name="Economist, May 11, 2006" /> |
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IKEA has avoided millions of euros in taxes<ref>{{Cite web |url=https://europeangreens.eu/news/ikea-report-ikea-avoided-1-billion-taxes-using-european-taxation-system-its-own-benefit |title=IKEA report: IKEA avoided €1 billion in taxes by using the European taxation system to its own benefit {{pipe}} European Greens |access-date=30 October 2023 |archive-date=30 October 2023 |archive-url=https://web.archive.org/web/20231030124933/https://europeangreens.eu/news/ikea-report-ikea-avoided-1-billion-taxes-using-european-taxation-system-its-own-benefit |url-status=dead }}</ref> performing some intricate mechanisms<ref>{{Cite news |last=Boffey |first=Daniel |date=2017-12-18 |title=EU investigates Ikea after Dutch deals reduce tax bill by €1bn|work=The Guardian |url=https://www.theguardian.com/business/2017/dec/18/eu-probes-ikea-after-dutch-deals-reduce-tax-bill-by-1bn |access-date=2023-11-15 |issn=0261-3077}}</ref> and it was noted by the EU back in 2017. The main countries where they operated their business using tax loopholes were the [[Netherlands]], [[Luxembourg]] and [[Belgium]]. |
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The [http://www.evb.ch/en/index.cfm Berne Declaration], a non-profit organization in Switzerland that promotes corporate responsibility, has formally criticized IKEA for its tax avoidance strategies. In 2007, the Berne Declaration nominated IKEA for one of its Public Eye "awards", which highlight corporate irresponsibility and are announced during the [[World Economic Forum]] in [[Davos]], Switzerland.<ref>{{cite web|url=http://www.evb.ch/en/p11676.html|title=Berne Declaration Public Eye Awards, 2007 Nominations}}www.evb.ch/en/index.cfm</ref> |
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[[Public Eye (organization)|Public Eye]], a non-profit organisation in Switzerland that promotes corporate responsibility, has formally criticised IKEA for its tax avoidance strategies. In 2007, the organisation nominated IKEA for one of its Public Eye "awards", which highlight corporate irresponsibility.<ref>{{cite web|url=http://www.evb.ch/en/p11676.html |publisher=[[Erklärung von Bern]] |title=Berne Declaration Public Eye Awards, 2007 Nominations |url-status=dead |archive-url=https://web.archive.org/web/20140409212238/http://www.evb.ch/en/p11676.html |archive-date=9 April 2014 }}</ref> |
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===Control by Kamprad=== |
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Along with helping IKEA make non-taxable profit, IKEA's complicated corporate structure allows Kamprad to maintain tight control over the operations of Ingka Holding, and thus the operation of most IKEA stores. The Ingka Foundation's five-person executive committee is chaired by Kamprad. It appoints the board of Ingka Holding, approves any changes to Ingka Holding's bylaws, and has the right to preempt new share issues. If a member of the executive committee quits or dies, the other four members appoint his or her replacement. |
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In February 2016, the [[The Greens–European Free Alliance|Greens / EFA]] group in the [[European Parliament]] issued a report entitled ''[https://www.greens-efa.eu/legacy/fileadmin/dam/Documents/Studies/Taxation/Report_IKEA_tax_avoidance_Feb2016.pdf IKEA: Flat Pack Tax Avoidance]'' on the tax planning strategies of IKEA and their possible use to avoid tax in several European countries. The report was sent to [[Pierre Moscovici]], the European Commissioner for Economic and Financial Affairs, Taxation and Customs, and [[Margrethe Vestager]], the [[European Commissioner for Competition]], expressing the hope that it would be of use to them in their respective roles "to advance the fight for tax justice in Europe".<ref name="greens-efa.eu" /><ref>{{cite web | url=https://www.statista.com/statistics/241801/gross-profit-of-ikea-worldwide/ | title=Gross profit of IKEA worldwide 2009–2018 {{pipe}} Statista | access-date=14 December 2017 | archive-date=15 December 2017 | archive-url=https://web.archive.org/web/20171215110656/https://www.statista.com/statistics/241801/gross-profit-of-ikea-worldwide/ | url-status=live }}</ref> |
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In Kamprad's absence the foundation's bylaws include specific provisions requiring it to continue operating the Ingka Holding group and specifying that shares can be sold only to another foundation with the same objectives as the Ingka Foundation.<ref name="Economist, May 11, 2006" /> |
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==Manufacturing, logistics, and labour== |
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===Charitable giving=== |
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Although IKEA originated in Sweden, their household products and furniture products are manufactured in many different countries, in order to achieve cost efficiency. For most of its products, the final assembly is performed by the end-user (consumer). |
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The [[Stichting INGKA Foundation|INGKA Foundation]] is officially dedicated to promoting "innovations in architecture and interior design."<ref name="Economist, May 11, 2006" /> With an estimated net worth of $36 billion, the foundation is unofficially the world's largest charitable organization, beating out the much better known [[Bill and Melinda Gates Foundation]], which has a net worth of approximately $33 billion.<ref name=FoundationFactSheet>{{cite web|url=http://www.gatesfoundation.org/MediaCenter/FactSheet/|title=Foundation Fact Sheet|publisher=[[Bill & Melinda Gates Foundation]]|accessdate=March 9, 2007}}</ref> However, most of the Group's profit is spent on investments, the foundation expects to spend €45 million on [[Charity (practice)|charitable giving]] in 2010 (compare the Gates Foundation, which made gifts of more than $1.5 billion in 2005.<ref name=FoundationFactSheet />) |
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Swedwood, an IKEA subsidiary, produces all of the company's wood-based products, with the largest Swedwood factory located in Southern Poland. According to the subsidiary, over 16,000 employees across 50 sites in 10 countries manufacture the 100{{nbsp}}million pieces of furniture that IKEA sells annually. IKEA furniture uses the hardwood alternative [[particle board]]. [[Hultsfred]], a factory in southern Sweden, is the company's sole supplier. |
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IKEA is involved in several international charitable causes, particularly in partnership with [[UNICEF]], including: |
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* In the wake of the [[2004 Indian Ocean earthquake and tsunami|2004 Boxing Day Tsunami]], IKEA Australia agreed to match dollar for dollar co-workers donations and donated all sales of the IKEA Blue Bag to the cause. |
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* After the Pakistan earthquake of 2006, IKEA gave 500,000 blankets to the relief effort in the region<ref>{{cite web|url=http://www.dailytimes.com.pk/default.asp?page=2006%5C01%5C04%5Cstory_4-1-2006_pg7_29|title=Quake children at greater risk after rain, snowfall: UN}}</ref> |
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* IKEA has provided furniture for over 100 "bridge schools" in [[Liberia]].<ref>{{cite web|url=http://www.unicef.org/infobycountry/liberia_27130.html |title=http://www.unicef.org/infobycountry/liberia_27130.html |publisher=Unicef.org |date= |accessdate=June 10, 2009}}</ref> |
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* In the [[2008 Sichuan earthquake]] in China, IKEA Beijing sold an alligator toy for 40 [[renminbi|yuan]] (US$5.83, €3.70) with all income going to the children in the earthquake struck area |
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Distribution centre efficiency and flexibility have been one of IKEA's ongoing priorities and thus it has implemented automated, robotic warehouse systems and [[warehouse management system]]s (WMS). Such systems facilitate a merger of the traditional retail and mail order sales channels into an [[Omnichannel order fulfillment|omni-channel fulfillment model]].<ref>{{cite web |title= State-of-the-art distribution center for IKEA |url= https://www.ssi-schaefer.com/en-at/company/news/state-of-the-art-distribution-center-for-ikea-462802 |website= ssi-schaefer.com |date= 15 June 2018 |access-date= 14 February 2021 |archive-date= 16 April 2021 |archive-url= https://web.archive.org/web/20210416112400/https://www.ssi-schaefer.com/en-at/company/news/state-of-the-art-distribution-center-for-ikea-462802 |url-status= dead }}</ref> In 2020, Ikea was noted by ''Supply Chain'' magazine as having one of the most automated warehouse systems in the world.<ref>{{cite web |title= The Top 10 Automated Warehouses |url= https://www.supplychaindigital.com/warehousing/top-10-automated-warehouses |website= Supplychaindigital.com |last= Pierce |first= Freddie |date= 7 March 2020 |access-date= 14 February 2021 |archive-date= 25 January 2021 |archive-url= https://web.archive.org/web/20210125181126/https://www.supplychaindigital.com/warehousing/top-10-automated-warehouses |url-status= live }}</ref> |
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IKEA also supports [[American Forests]] to restore forests and reduce pollution.<ref>{{cite web|url=http://www.ikea.com/ms/en_US/about_ikea/plant_trees.html |title=Plant Trees |publisher=IKEA |date=June 12, 2006 |accessdate=June 10, 2009}}</ref><ref>{{cite web|url=http://www.americanforests.org/planttrees/af_info.php?campaign=ikea |title=American Forests |publisher=American Forests |date= |accessdate=September 27, 2010}}</ref> |
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In the 1980s under the rule of the Romanian dictator [[Nicolae Ceaușescu]], Romania's secret police, the [[Securitate]], received six-figure payments from IKEA.<ref>{{Cite news |last=Rosca |first=Matei |date=2014-07-04 |title=Ikea funds went to Romanian secret police in communist era|work=The Guardian |url=https://www.theguardian.com/world/2014/jul/04/ikea-funds-romania-secret-police-communist-era |access-date=2023-02-14 |issn=0261-3077 |archive-date=20 October 2017 |archive-url=https://web.archive.org/web/20171020060152/https://www.theguardian.com/world/2014/jul/04/ikea-funds-romania-secret-police-communist-era |url-status=live }}</ref><ref>{{Cite web |date=2014-07-07 |title=Ikea paid millions to Romania's communist secret police in 1980s |url=https://www.scmp.com/news/world/article/1548113/ikea-paid-millions-romanias-communist-secret-police-1980s |access-date=2023-02-14 |website=South China Morning Post|archive-date=14 February 2023 |archive-url=https://web.archive.org/web/20230214053346/https://www.scmp.com/news/world/article/1548113/ikea-paid-millions-romanias-communist-secret-police-1980s |url-status=live }}</ref> According to declassified files at the National College for Studying the Securitate Archives, IKEA agreed to overcharge for products made in [[Romania]] and some of the overpayment funds were deposited into an account controlled by the Securitate.<ref>{{Cite web |title=Programmable Search Engine |url=https://cse.google.com/cse?cx=011669139259916526426:ikoewsmuaba&ie=windows-1250&q=ikea&sa=C%C4%83utare&siteurl=www.cnsas.ro/&ref=&ss=303j38345j4#gsc.tab=0&gsc.q=ikea&gsc.page=1 |access-date=2023-02-14 |archive-date=14 February 2023 |archive-url=https://web.archive.org/web/20230214053338/https://cse.google.com/cse?cx=011669139259916526426:ikoewsmuaba&ie=windows-1250&q=ikea&sa=C%C4%83utare&siteurl=www.cnsas.ro/&ref=&ss=303j38345j4#gsc.tab=0&gsc.q=ikea&gsc.page=1 |url-status=live }}</ref> |
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IKEA, is not, in fact, a Swedish company, but a company controlled by the Dutch stichting – a tax exempt, nonprofit foundation – to which Ingvar Kamprad transferred his ownership shares in 1982. Kamprad also created a company called Inter IKEA Systems B.V., which owns IKEA concept and trademark. In theory, three percent of the revenue of each IKEA store goes to Inter IKEA.<ref name=TNY /> |
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== |
=== 2021 supply chain problems === |
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Due to the COVID-19 pandemic, IKEA has been facing major supply chain issues since 2021, which could extend into 2022. Jon Abrahamsson, the chief executive of Inter IKEA has stated that the main issue is shipping products from China, as a "quarter" of IKEA products are made there.<ref>{{cite web|url=https://globalnews.ca/news/8265916/ikea-supply-chain-shortages-2022/|title=IKEA expects supply chain disruptions into 2022 as it fights 'perfect storm'|date=14 October 2021|access-date=6 February 2022|last=Ringstrom|first=Anna|archive-date=6 February 2022|archive-url=https://web.archive.org/web/20220206164829/https://globalnews.ca/news/8265916/ikea-supply-chain-shortages-2022/|url-status=live}}</ref> A variety of reasons led to supply shortages, including consumption shocks. In addition, factories were unable to produce raw materials and workers even after they began receiving orders.<ref>{{Cite journal |last1=Panwar |first1=Rajat |last2=Pinkse |first2=Jonatan |last3=De Marchi |first3=Valentina |date=February 2022 |title=The Future of Global Supply Chains in a Post-COVID-19 World |journal=California Management Review|volume=64 |issue=2 |pages=5–23 |doi=10.1177/00081256211073355 |s2cid=246777087 |issn=0008-1256 |doi-access=free }}</ref><ref name="BBC News">{{Cite news |date=15 October 2021 |title=Ikea warns stock shortages to last into next year |url=https://www.bbc.com/news/business-58912045 |url-status=live |archive-url=https://web.archive.org/web/20220614072121/https://www.bbc.com/news/business-58912045 |archive-date=14 June 2022 |access-date=14 June 2022 |work=BBC News}}</ref> |
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In September 2005, IKEA Social Initiative was formed to manage the company's social involvements on a global level. IKEA Social Initiative is headed by Marianne Barner. |
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===Labour practices=== |
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The main partners to IKEA Social Initiative are [[UNICEF]]<ref>{{cite web|url=http://www.unicef.org/corporate_partners/index_25092.html |title=UNICEF's corporate partnerships |publisher=Unicef.org |date= |accessdate=December 26, 2010}}</ref> and [[Save the Children]].<ref>[http://www.savethechildren.net/alliance/corporate/corp_ikea/ikea_index3.html International Save the Children Alliance]{{dead link|date=December 2010}}</ref> |
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During the 1980s, IKEA kept its costs down by using production facilities in [[East Germany]]. A portion of the workforce at those factories consisted of [[political prisoner]]s. This fact, revealed in a report by [[Ernst & Young]] commissioned by the company, resulted from the intermingling of criminals and political dissidents in the state-owned production facilities IKEA contracted with, a practice which was generally known in West Germany. IKEA was one of a number of companies, including West German firms, which benefited from this practice. The investigation resulted from attempts by former political prisoners to obtain compensation. In November 2012, IKEA admitted being aware at the time of the possibility of use of [[unfree labour|forced labour]] and failing to exercise sufficient control to identify and avoid it. A summary of the Ernst & Young report was released on 16 November 2012.<ref name=NYT111612>{{cite news|title=Ikea Admits Forced Labor Was Used in 1980s|url=https://www.nytimes.com/2012/11/17/business/global/ikea-to-report-on-allegations-of-using-forced-labor-during-cold-war.html |archive-url=https://ghostarchive.org/archive/20220103/https://www.nytimes.com/2012/11/17/business/global/ikea-to-report-on-allegations-of-using-forced-labor-during-cold-war.html |archive-date=3 January 2022 |url-access=subscription |url-status=live|access-date=17 November 2012|newspaper=The New York Times|date=16 November 2012|author=Nicholas Kulish|author2=Julia Werdigier}}{{cbignore}}</ref> |
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In 2018, Ikea was accused of [[union busting]] when employees sought to organize, using such tactics as [[captive audience meeting]]s.<ref>{{cite web |url=https://www.businessinsider.com/ikea-accused-of-anti-union-tactics-2018-10 |first=Áine |last=Cain |date=3 October 2018 |access-date=8 July 2022 |title=Unions are accusing IKEA of cracking down on Massachusetts workers in a series of 'captive-audience' meetings featuring fear-mongering PowerPoints |website=[[Business Insider]] |archive-date=8 July 2022 |archive-url=https://web.archive.org/web/20220708140505/https://www.businessinsider.com/ikea-accused-of-anti-union-tactics-2018-10 |url-status=live }}</ref><ref>{{cite news |url=https://www.reuters.com/article/us-ikea-unions-idUSKCN1M721G |first=Anna |last=Ringstrom |title=Unions accuse IKEA of undermining workers' rights in three markets |work=[[Reuters]] |access-date=8 July 2022 |date=27 September 2018 |archive-date=8 July 2022 |archive-url=https://web.archive.org/web/20220708140504/https://www.reuters.com/article/us-ikea-unions-idUSKCN1M721G |url-status=live }}</ref> |
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On February 23, 2009, at the [[ECOSOC]] event in New York, [[UNICEF]] announced that IKEA Social Initiative has become the agency's largest corporate partner, with total commitments of more than US$180 million.<ref>UNICEF (February 23, 2009) [http://www.unicef.org/media/media_48176.html IKEA social initiative adds $48 million to UNICEF's child health programme]</ref><ref>Reuters India (February 23, 2009) [http://in.reuters.com/article/topNews/idINIndia-38166220090223 Ikea gives UNICEF $48 mln to fight India child labor]</ref> |
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IKEA was named one of the 100 Best Companies for Working Mothers in 2004 and 2005 by ''Working Mothers'' magazine.<ref>{{cite web|date=21 September 2004|title=IKEA Named to Working Mother Magazine's '100 Best Companies for Working Mothers' for Second Consecutive Year|url=https://www.businesswire.com/news/home/20040921005210/en/IKEA-Named-Working-Mother-Magazines-100-Companies|access-date=11 June 2020|website=businesswire.com|archive-date=15 August 2020|archive-url=https://web.archive.org/web/20200815030512/https://www.businesswire.com/news/home/20040921005210/en/IKEA-Named-Working-Mother-Magazines-100-Companies|url-status=live}}</ref> It ranked 80 in [[Fortune (magazine)|Fortune's]] 200 Best Companies to Work For in 2006 and in October 2008, IKEA Canada LP was named one of "[[Canada's Top 100 Employers]]" by Mediacorp Canada Inc.<ref>{{cite web|url=http://www.eluta.ca/top-employer-ikea-canada|title=Reasons for Selection, 2009 Canada's Top 100 Employers Competition|access-date=14 January 2009|archive-date=22 January 2013|archive-url=https://web.archive.org/web/20130122010834/http://www.eluta.ca/top-employer-ikea-canada|url-status=live}}</ref> |
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Examples of involvements: |
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* IKEA through IKEA Social Initiative contribute €1 to UNICEF and Save the Children from each soft toy sold during the holiday seasons, raising a total of €16.7 million so far.<ref>{{cite web|url=http://www.unicef.org.uk/press/news_detail_full_story.asp?news_id=1282|title=UNICEF: IKEA Soft Toy campaign raises €5.4 million for education projects}}</ref> |
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* IKEA Social Initiative provided soft toys to children in cyclone affected [[Myanmar]].<ref>{{cite web|url=http://www.savethechildren.org/newsroom/2008/ikea-toys-myanmar.html|title= Save the Children: IKEA Provides Soft Toys to Children in Cyclone-Affected Myanmar}}</ref> |
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* Starting in June 2009, for every Sunnan solar-powered lamp sold in IKEA stores worldwide, IKEA Social Initiative will donate one Sunnan with the help of UNICEF.<ref>{{Cite news|url=http://www.reuters.com/article/pressRelease/idUS99995+21-Jul-2009+PRN20090721|title= Reuters / PR Newswire: Sunny News: IKEA and UNICEF Lighten Up Children's Lives in the Developing World | date=July 21, 2009}}</ref> |
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* In September, the IKEA Foundation pledged to donate $62 million to help Somali refugees in [[Kenya]].<ref name="TNY"/> |
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* According to ''The Economist'', however, IKEA's charitable giving is meager, "barely a rounding error in the foundation's assets."<ref name="TNY"/> |
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==Environmental initiatives== |
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In 2009, Sweden's largest television station, SVT, revealed that IKEA's money—the three per cent collection from each store—does not actually go to a charitable foundation in Holland, an IKEA has said. Inter IKEA is owned by a foundation in owned by a foundation in [[Liechtenstein]], called Interogo, which has amassed twelve billion dollars, is controlled by the Kamprad family.<ref name="TNY"/> |
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[[File:Yellow IKEA shopping bag (2019) 03.jpg|alt=yellow IKEA shopping bag|thumb|Yellow IKEA recyclable shopping bag]] |
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[[File:HK CWB Park Lane basement shop IKEA lighting LED lamps notice Dec-2015 DSC.JPG|thumb|LED lamp display at an IKEA in Hong Kong]] |
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===Umbrella initiatives=== |
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==Environmental performance== |
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After initial environmental issues like the highly publicized formaldehyde scandals in the early 1980s and 1992, IKEA took a proactive stance on environmental issues and tried to prevent future incidents through a variety of measures.<ref>See Bartlett, Dessain, Sjöman (2006) |
After initial environmental issues like the highly publicized [[formaldehyde]] scandals in the early 1980s and 1992,<ref>{{cite web |title=Ikea and formaldehyde |url=http://www.peterre.info/ikea/formaldehyde/ |publisher=unknown (2003 to 6 February 2004) |access-date=2 July 2013 |archive-date=21 November 2018 |archive-url=https://web.archive.org/web/20181121042415/http://www.peterre.info/ikea/formaldehyde/ |url-status=live }}</ref><ref>{{cite web|title=Formaldehyde and other VOC's |url=http://www.ikeafans.com/forums/articles/5107-formaldehyde-other-vocs.html |publisher=ikeafans.com | date=February 1998 |access-date=2 July 2013 |url-status=dead |archive-url=https://web.archive.org/web/20130625033018/http://www.ikeafans.com/forums/articles/5107-formaldehyde-other-vocs.html |archive-date=25 June 2013 }}</ref><ref>{{cite news | title=Eco Etiquette: Should I Freak Out About Formaldehyde In Baby Furniture? | url=https://www.huffpost.com/entry/eco-etiquette-should-i-fr_b_814096 | first=Jennifer | last=Grayson | work=[[HuffPost]] | date=26 January 2011 | access-date=27 April 2020 | archive-date=22 September 2020 | archive-url=https://web.archive.org/web/20200922215154/https://www.huffpost.com/entry/eco-etiquette-should-i-fr_b_814096 | url-status=live }}</ref> IKEA took a proactive stance on environmental issues and tried to prevent future incidents through a variety of measures.<ref>See Bartlett, Dessain, Sjöman (2006) – Ikea's Global Sourcing Challenge: Indian Rugs and Child Labour (A) in Harvard Business School</ref> In 1990, IKEA invited [[Karl-Henrik Robèrt]], founder of [[the Natural Step]], to address its board of directors. Robert's system conditions for sustainability provided a [[Strategy|strategic approach]] to improving the company's environmental performance. In 1990, IKEA adopted the Natural Step framework as the basis for its environmental plan.<ref name=Owens>Owens, Heidi (1998) [http://www.ortns.org/documents/Ikea.pdf Ikea: A Natural Step Case Study]. {{webarchive |url=https://web.archive.org/web/20051125152924/http://www.ortns.org/documents/Ikea.pdf |date=25 November 2005 }} Oregon Natural Step Network. Retrieved 6 April 2008.</ref> This led to the development of an Environmental Action Plan, which was adopted in 1992. The plan focused on structural change, allowing IKEA to "maximize the impact of resources invested and reduce the energy necessary to address isolated issues".<ref name=Owens /> The environmental measures taken include the following: |
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# Replacing [[polyvinylchloride]] (PVC) in wallpapers, home textiles, shower curtains, lampshades |
# Replacing [[polyvinylchloride]] (PVC) in wallpapers, home textiles, shower curtains, lampshades and furniture—PVC has been eliminated from packaging and is being phased out in electric cables; |
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# |
# Minimizing the use of [[formaldehyde]] in its products, including textiles; |
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# |
# Eliminating acid-curing [[lacquer]]s; |
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# |
# Producing a model of chair (OGLA) made from 100% [[Post-consumer waste|post-consumer]] [[plastic pollution|plastic waste]]; |
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# |
# Introducing a series of air-inflatable furniture products into the product line. Such products reduce the use of raw materials for framing and stuffing and reduce transportation weight and volume to about 15% of that of conventional furniture; |
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# |
# Reducing the use of [[chromium]] for metal surface treatment; |
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# Limiting the use of substances such as [[cadmium]], lead, [[Polychlorinated biphenyl|PCB]], [[Pentachlorophenol|PCP]], and [[Azo dye|Azo pigments]]; |
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# |
# Using wood from responsibly managed forests that replant and maintain [[Biodiversity|biological diversity]]; |
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# |
# Using only [[Recycling|recyclable materials]] for flat packaging and "pure" (non-mixed) materials for packaging to assist in recycling.<ref name=Owens /> |
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# |
# Introducing rental bicycles with trailers for customers in Denmark.<ref>{{cite web|url=http://usingbicycles.blogspot.com/2008/07/ikea-bikes-no-theyre-not-made-of.html|title=IKEA Bikes (no, they're not made of plywood)|work=Using Bicycles|author=Sherwood Stranieri|date=17 July 2008|access-date=27 July 2008|archive-date=9 November 2020|archive-url=https://web.archive.org/web/20201109032431/http://usingbicycles.blogspot.com/2008/07/ikea-bikes-no-theyre-not-made-of.html|url-status=live}}</ref> |
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In 2000, IKEA <ref>{{Cite web |last=admin |date=2023-11-21 |title=Unveiling the Elegance: Transform Your Space with IKEA Bedroom Furniture Sets |url=https://decormastery.com/ikea-bedroom-furniture/ |access-date=2023-11-21 |website=Decor Mastery}}</ref> introduced its code of conduct for suppliers that covers social, safety, and environmental questions. Today IKEA has around 60 auditors who perform hundreds of supplier audits every year. The main purpose of these audits is to make sure that the IKEA suppliers follow the law in each country where they are based. Most IKEA suppliers fulfil the law today with exceptions for some special issues, one being excessive working hours in Asia, in countries such as China and India.{{citation needed|date=May 2016}} |
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More recently, IKEA has stopped providing plastic bags to customers, but offers reusable bags for sale. The IKEA restaurants also only offer reusable plates, knives, forks, spoons, etc. Toilets in some IKEA restrooms have been outfitted with dual-function flushers. IKEA has recycling bins for [[compact fluorescent lamps]] (CFLs), energy saving bulbs, and batteries. |
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In 2001 IKEA was one of the first companies to operate its own cross-border freight trains through several countries in Europe.<ref>{{cite web|url=http://www.cisionwire.com/banverket/ikea-leads-the-way-on-deregulated-european-railways |title=Banverket – press release |publisher=Cision Wire |date= |accessdate=June 29, 2001}}</ref> |
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{{As of|2018|March}}, IKEA has signed on with 25 other companies to participate in the [[British Retail Consortium]]'s Better Retail Better World initiative, which challenges companies to meet objectives outlined by the United Nations [[Sustainable Development Goals]].<ref>{{cite web|url=https://brc.org.uk/making-a-difference/priorities/better-retail-better-world/#WHO'S%20TAKING%20ACTION|title=Better Retail, Better World|website=brc.org.uk|access-date=25 July 2018|archive-date=25 October 2020|archive-url=https://web.archive.org/web/20201025192353/https://brc.org.uk/making-a-difference/priorities/better-retail-better-world#WHO'S%20TAKING%20ACTION|url-status=live}}</ref> |
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In August 2008, IKEA also announced that it had created IKEA GreenTech, a €50 million venture capital fund. Located in [[Lund]] (a college town in Sweden), it will invest in 8–10 companies in the coming five years with focus on [[solar cells|solar panels]], alternative light sources, product materials, energy efficiency, and water saving and purification. The aim is to commercialise green technologies for sale in IKEA stores within 3–4 years.<ref>{{cite web|url=http://futurethinktank.com/2008/08/07/ikea-sets-its-sights-on-the-sun/ |title=IKEA Sets its Sights on the Sun|publisher=Futurethinktank.com (futurethink's innovation weblog)|date=August 7, 2008 |accessdate=June 10, 2009}}</ref><ref>{{cite web|url=http://www.greenvc.org/ikea_greentech/ |title=IKEA GreenTech |publisher=Green VC |date=August 10, 2008 |accessdate=June 10, 2009}}</ref> |
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===Product life cycle=== |
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In order to make IKEA a more sustainable company a product life cycle has been created, and there is now a never ending list. The idea stage says that products should be flat packed so more can be shipped at once, and that products should be easy to dismantle and recycle. Raw materials are used, and since wood and cotton are two of the most important products in IKEA production so IKEA makes the most out of every tree and cotton plant, and works with environmentally friendly forests and cotton without the excessive use of chemicals and water. Manufacturing comes third in the life cycle and includes IWAY which is IKEA's code of conduct for manufactures and suppliers which makes and enforces requirements for working conditions, social and environmental standards, and what suppliers can expect from them in return. Marketing is another part of IKEA's life cycle and as much of their paper for their catalogs comes from responsibly managed forests. The catalog is also now made smaller which requires less paper, and less waste in the process. This also enables more catalogs to be shipped per load. IKEA stores recycle waste, and many run on renewable energy, and energy-saving bulbs and sensors are used. All employees are trained in environmental and social responsibility, and IKEA strives to give customers access to good public transit, and well as the stores being involved in the local community. IKEA products help customers to live a more sustainable life at home. The coffee served is also certified organic. The last stage of the life cycle is the end of life. Most IKEA stores take back burned out light bulbs and drained batteries and makes sure they are recycled responsibly. IKEA is also currently working on developing a way to take back recycled sofas and other home furnishing products that have reached their own end of life.<ref>http://www.ikea.com/ms/en_US/the_ikea_story/people_and_the_environment/a_more_sustainable_life_at_home.html</ref> |
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To make IKEA a more sustainable company, a product life cycle was created. For the idea stage, products should be flat-packed so that more items can be shipped at once; products should also be easier to dismantle and recycle. Raw materials are used, and since wood and cotton are two of IKEA's most important manufacturing products, the company works with environmentally friendly forests and cotton, whereby the excessive use of chemicals and water is avoided.<ref>{{cite web |url=http://www.ikea.com/ms/en_US/pdf/reports-downloads/sustainability-strategy-people-and-planet-positive.pdf |title=IKEA Group Sustainability Strategy 2016 |access-date=23 February 2017 |archive-date=26 February 2019 |archive-url=https://web.archive.org/web/20190226181231/https://www.ikea.com/ms/en_US/pdf/reports-downloads/sustainability-strategy-people-and-planet-positive.pdf |url-status=dead }}</ref> |
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IKEA stores recycle waste and many run on renewable energy. All employees are trained in environmental and social responsibility, while public transit is one of the priorities when the location of stores is considered. Also, the coffee and chocolate served at IKEA stores is [[UTZ Certified]].<ref>{{cite web|url=https://www.utz.org/better-business-hub/strengthening-your-reputation/from-store-to-farm-traceability-in-action-at-ikea/|title=From store to farm – traceability in action at IKEA – UTZ.org|website=UTZ.org|access-date=19 May 2016|archive-date=17 August 2020|archive-url=https://web.archive.org/web/20200817184547/https://utz.org/better-business-hub/strengthening-your-reputation/from-store-to-farm-traceability-in-action-at-ikea/|url-status=live}}</ref> |
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==Community impact== |
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IKEA's goals of sustainability and environmental design in their merchandise have sometimes been at odds with the impact a new IKEA store can have on a community. |
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The last stage of the life cycle is the end of life. Most IKEA stores recycle light bulbs and drained batteries, and the company is also exploring the recycling of sofas and other home furnishing products. |
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* In September 2004, when IKEA offered a limited number of free $150 vouchers at the opening of a new store in Jeddah, Saudi Arabia, three people were crushed to death in a stampede that followed the store's opening.<ref name>{{Cite news|url=http://news.bbc.co.uk/1/hi/world/middle_east/3618190.stm |title=World | Middle East | Three die in Saudi shop stampede |publisher=BBC News |date=September 1, 2004 |accessdate=June 10, 2009}}</ref> |
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[[File:Midtown Excursion 061.jpg|thumb|IKEA at [[Atlantic Station]] in [[Atlanta, GA]].]] |
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* IKEA has demolished historic buildings<ref>{{cite web|url=http://www.metropolismag.com/html/content_0203/ob/ob05_0203.html|title=Disposable Architecture|author=Christopher Hawthorne|publisher=[[Metropolis (American magazine)|Metropolis]]|month=February | year=2003|accessdate=June 8, 2007}}</ref> in at least one case for a parking area.<ref>{{Cite news|url=http://www.nydailynews.com/boroughs/2006/11/22/2006-11-22_suit_aims_to_make_an_ikea_lot_history.html|title=Suit aims to make an IKEA lot history|publisher=[[New York Daily News]]|date=November 22, 2006|accessdate=June 8, 2007 |archiveurl = http://web.archive.org/web/20070712175632/http://www.nydailynews.com/boroughs/2006/11/22/2006-11-22_suit_aims_to_make_an_ikea_lot_history.html |archivedate = July 12, 2007}}</ref> (At the College Park, Maryland, USA, store there is an interactive digital display which tells the history of a tavern which used to exist where the store is currently located.) |
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* IKEA was refused planning permission for a future store in the United Kingdom in 2004 (to be based in [[Stockport]], Greater Manchester) by the [[Office of the Deputy Prime Minister]]. It applied for [[judicial review]] but lost in 2005.<ref>{{Cite news|url=http://news.bbc.co.uk/1/hi/england/manchester/4278539.stm|title=Ikea loses fight to build store|publisher=BBC News|date=February 18, 2005}}</ref><ref>{{Cite news|url=http://www.manchesteronline.co.uk/news/s/125/125859_fury_as_prescott_blocks_ikea_store.html|title= Fury as Prescott blocks Ikea store|date=August 3, 2004|publisher=manchesteronline}}</ref> However, they later received permission to build a store within [[Greater Manchester]] a few miles from the originally planned site in [[Ashton-under-Lyne]].<ref>{{Cite news|url=http://news.bbc.co.uk/1/hi/england/manchester/4604024.stm|title=Ikea's superstore plans approved|publisher=BBC News|date=January 11, 2006}}</ref> An estimated £10,000 was spent on traffic policing, and even more on rerouting traffic from the [[M60 motorway]] around Ashton. |
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* After viewing the {{convert|100|ft|m|adj=mid|-tall}} sign of an IKEA under construction near [[Portland International Airport]], Randy Leonard, the city commissioner in charge of sign permits in [[Portland, Oregon]], placed a moratorium on all pending and future sign permits in the area.<ref>{{cite web|author=By VINCE PATTON for kgw.com |url=http://www.kgw.com/business/stories/kgw_031907_biz_ikea_sign.2c476aab.html |title=Business | kgw.com | News for Oregon and SW Washington |publisher=kgw.com |date=March 19, 2007 |accessdate=June 10, 2009 |archiveurl = http://web.archive.org/web/20080420075833/http://www.kgw.com/business/stories/kgw_031907_biz_ikea_sign.2c476aab.html |archivedate = April 20, 2008}}</ref> |
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===Energy sources=== |
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==Criticisms== |
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In August 2008, IKEA announced that it had created IKEA GreenTech, a €50{{nbsp}}million venture capital fund. Located in [[Lund]] (a university town in Sweden), it will invest in 8–10 companies in the coming five years with focus on [[solar cells|solar panels]], alternative light sources, product materials, energy efficiency and water saving and purification. The aim is to commercialise green technologies for sale in IKEA stores within 3–4 years.<ref>{{cite web |date=7 August 2008 |title=Ikea Sets its Sights on the Sun |url=http://futurethinktank.com/2008/08/07/ikea-sets-its-sights-on-the-sun/ |url-status=dead |archive-url=https://web.archive.org/web/20090710105817/http://futurethinktank.com/2008/08/07/ikea-sets-its-sights-on-the-sun/ |archive-date=10 July 2009 |access-date=10 June 2009 |publisher=Futurethinktank.com (futurethink's innovation weblog)}}</ref><ref>{{cite web |date=10 August 2008 |title=IKEA GreenTech |url=http://www.greenvc.org/ikea_greentech/ |url-status=dead |archive-url=https://web.archive.org/web/20090430194505/http://www.greenvc.org/ikea_greentech/ |archive-date=30 April 2009 |access-date=10 June 2009 |publisher=Green VC}}</ref> |
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{{Criticism section|date=July 2009}} |
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[[File:VillepinteFrance.JPG|thumb|Paris Nord 2, Roissy, France]] |
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* IKEA founder [[Ingvar Kamprad]] was, as a teen, directly involved in the pro-[[Nazism|Nazi]] [[New Swedish Movement]] (''Nysvenska Rörelsen'') until at least 1948, causing tensions when IKEA began opening stores in Israel.<ref>{{cite web|url=http://www.jewishsf.com/content/2-0-/module/displaystory/story_id/13393/edition_id/259/format/html/displaystory.html|title=Founder of Ikea store haunted by Nazi past|date=April 7, 2000}}{{Dead link|date=March 2011}}</ref> Kamprad devotes two chapters to his time in Nysvenska Rörelsen in his book, ''Leading By Design: The IKEA Story'' and, in a 1994 letter to IKEA employees, called his affiliation with the organization the "greatest mistake of my life."<ref>{{cite web|url=http://entrepreneurs.about.com/cs/famousentrepreneur/p/ingvarkamprad.htm|title=Ingvar Kamprad – IKEA Founder and One of the World's Richest Men}}</ref> After the revelations came to light, he pledged £1 billion to charity.<ref>{{cite news| url=http://www.telegraph.co.uk/news/worldnews/europe/sweden/8772007/IKEA-founder-pledges-1bn-to-charity-following-Nazi-past-revelations.html | location=London | work=The Daily Telegraph | first=Richard | last=Orange | title=IKEA founder pledges £1bn to charity following Nazi past revelations | date=September 18, 2011}}</ref> |
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* Former Norwegian prime minister [[Kjell Magne Bondevik]] has criticized IKEA for not depicting women assembling furniture in its instruction booklets, despite the fact that many sets of instructions do, in fact, show women.<ref>{{cite web|url=http://www.thelocal.se/article.php?ID=1085&date=20050310|title=Norwegian prime minister slams IKEA|date=March 10, 2005}}</ref> |
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*In 2004 there was controversy about an Irish law restricting the maximum size of a retail outlet to 6,000 m<sup>2</sup>. IKEA's plan to build a much larger store in [[Dublin]] caused the law to be put up for debate. The law was changed to remove the size limit for retail outlets selling durable goods in designated areas.<ref>{{cite news|url=http://www.rte.ie/news/2005/0105/ikea-business.html |title=RTÉ report on the loosening of shop planning laws |publisher=Rte.ie |date=January 5, 2005 |accessdate=June 10, 2009}}</ref> The Minister for the Environment was criticized for allegedly changing the law to suit one company and other agencies protested the law change as damaging to small businesses while the government defended their decision stating that the move was a positive one for Irish consumers. IKEA Dublin has since opened on 27 July 2009.<ref>{{cite web|url=http://www.ikea.ie|title=IKEA Ireland|accessdate=April 15, 2008}}</ref> |
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*June 2007: the [[designated nationalist]] [[Social Democratic and Labour Party]] complained about an artist's rendering of IKEA Belfast that included both the [[Union Flag]] and the [[Ulster Banner]] flag as two of the three flags in front of the store. After being labelled "an upmarket [[Orange Institution|Orange]] hall" by the party, IKEA assured customers and coworkers that only the Swedish flag would be seen outside the actual store.<ref>{{Cite news|url=http://news.bbc.co.uk/1/hi/northern_ireland/6746905.stm|title='No Union flag at new Ikea store'|publisher=BBC News|date=June 12, 2007|accessdate=August 9, 2007}}</ref> |
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*June 2007: The BRUNKRISSLA bedding notes said, "Brightens up your grad's dorm. Unlike a creepy gothic roommate, who can be a bad influence." Members of the [[goth subculture]] took offense at the [[stereotype]].<ref>{{cite news|url=http://blog.wired.com/tableofmalcontents/2007/06/griping-goths-g.html |title=Wired |publisher=Blog.wired.com |date= June 26, 2007|accessdate=June 10, 2009 |first=Eliza |last=Gauger}}</ref> |
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*A researcher from the [[University of Copenhagen]] discovered that for years, IKEA has named their cheap [[rug making|rugs]] after Danish places, while the more expensive and luxurious furniture was named after Swedish places. The researcher, Klaus Kjøller, who is well known for [[tongue-in-cheek]] statements, accused IKEA of [[imperialism]].<ref>{{cite web|url=http://www.thelocal.se/10054/20080220/|title=Ikea guilty of 'cultural imperialism': Danes|author=O'Mahony, Paul|publisher=[[The Local]]|date=February 20, 2008|accessdate=March 8, 2008}}</ref> |
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*IKEA has been criticized by [[Citytv]] in Canada for charging as much as twice the price in their Canadian stores for the same items sold in their American stores, this despite the Canadian dollar reaching parity with the U.S. dollar.<ref>{{cite web|url=http://www.citynews.ca/news/news_16470.aspx/|title=CityNews: "Ikea confronted over Canadian–U.S. price differences"|date=November 5, 2007|accessdate=June 19, 2008}}</ref> |
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* In 2008, IKEA sent an email to their British customers advising that ''"IKEA Shop Online is open everywhere"'', however this only applied to [[England and Wales]]. As of June 2011 [[Northern Ireland|Northern Irish]] and Scottish customers are unable to shop online, however some Scottish customers may get items delivered via IKEA [[Edinburgh]].<ref>{{cite web|url=http://www.ikea.com/ms/en_GB/customer_service/shop_online/what_is_shop_online.html |title=What is shop online? |publisher=IKEA |date=September 22, 2009 |accessdate=December 26, 2010}}</ref> This scheme called IKEA DIRECT only applies to certain postcodes and costs between £35 (City of Edinburgh) to £120 ([[Aberdeenshire]]) for delivery.<ref>http://www.ikea.com/ms/en_GB/img/local_store_info/edinburgh/IKEA_DIRECT_leaflet.pdf</ref> Even today, IKEA customers in Australia cannot shop online. |
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*In November 2009, IKEA, along with [[Abercrombie & Fitch]], [[Gymboree]], [[Hanes]], [[Kohl's]], [[LL Bean]], [[Pier 1]], [[Propper]] International, and [[Walmart]], was added to the 2010 Sweatshop Hall of Shame by labour rights group International Labor Rights Forum.<ref>{{cite web|url=http://www.laborrights.org/sites/default/files/publications-and-resources/sweatshop_hall_shame_2010.pdf |title=The 2010 Sweatshop Hall of Shame |format=PDF |date= |accessdate=December 26, 2010}}</ref> |
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* In 2011, IKEA and its Swedwood affiliate came under criticism for its treatment of workers at a U.S. factory in Danville, Virginia and its decision to hire the law firm [[Jackson Lewis LLP |Jackson Lewis]], which is often employed by companies to counter labor demands, to consult with IKEA on attempts to form a union at Danville. A petition on Change.org has received more than 70,000 signatures urging IKEA to respect workers rights.<ref>http://www.change.org/petitions/tell-ikea-to-respect-its-workers</ref> |
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On 17 February 2011, IKEA announced its plans to develop a wind farm in [[Dalarna County]], Sweden, furthering its goal of using only renewable energy to fuel its operations.<ref>{{cite web|url=http://news.cnet.com/8301-11128_3-20032930-54.html|title=IKEA building its own personal wind farm|publisher=CNET|date=17 February 2011|access-date=17 February 2011|archive-date=21 February 2014|archive-url=https://web.archive.org/web/20140221214447/http://news.cnet.com/8301-11128_3-20032930-54.html|url-status=dead}}</ref> {{as of|2012|June}},{{update inline|date=October 2017}} 17 United States IKEA stores are powered by solar panels, with 22 additional installations in progress,<ref name="Business Wire">{{cite web|title=Ikea U.S. Solar Plans near 89% with Two More Installations Proposed; Distribution Centers in Perryville, MD and Westampton, NJ Will Be among Country's Largest Projects |url=http://www.marketwatch.com/story/ikea-us-solar-plans-near-89-with-two-more-installations-proposed-distribution-centers-in-perryville-md-and-westampton-nj-will-be-among-countrys-largest-projects-2012-06-12 |publisher=Business Wire |date=12 June 2012 |url-status=dead |archive-url=https://web.archive.org/web/20140712230851/http://www.marketwatch.com/story/ikea-us-solar-plans-near-89-with-two-more-installations-proposed-distribution-centers-in-perryville-md-and-westampton-nj-will-be-among-countrys-largest-projects-2012-06-12 |archive-date=12 July 2014 }}</ref><!-- The archived link is now also dead. --> and IKEA owns the 165 MW Cameron Wind farm in [[Cameron County, Texas|Cameron County]] on the South Texas coast<ref>{{cite news |url=http://www.houstonchronicle.com/business/article/Steady-breezes-at-the-right-time-boost-Gulf-Coast-11363533.php |title=Sea change: Gulf Coast wind farms become vital to Texas energy mix |first=Ryan Maye |last=Handy |newspaper=[[Houston Chronicle]] |date=27 July 2017 |access-date=31 July 2017 |archive-date=9 November 2020 |archive-url=https://web.archive.org/web/20201109023412/https://www.houstonchronicle.com/business/article/Steady-breezes-at-the-right-time-boost-Gulf-Coast-11363533.php |url-status=live }}</ref> and a [[List of offshore wind farms in the Baltic Sea|42 MW coastal wind farm]] in Finland.<ref>{{cite web|url=http://www.vindkraftsnyheter.se/20171006/5375/ajos-vindpark-overlamnad-till-kund|title=Ajos vindpark överlämnad till kund|work=vindkraftsnyheter.se|date=6 October 2017|access-date=11 October 2017|archive-date=16 October 2018|archive-url=https://web.archive.org/web/20181016125949/http://www.vindkraftsnyheter.se/20171006/5375/ajos-vindpark-overlamnad-till-kund|url-status=dead}}</ref> |
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===Verdanagate=== |
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In 2009 IKEA caused a flap in the [[graphic design]] world when it changed the [[typeface]] used in its catalog from [[Futura (typeface)|Futura]] to [[Verdana]], expressing a desire to unify its branding between print and web media. The controversy has been attributed to the perception of Verdana as a symbol of homogeneity in popular typography.<ref name="VGArmin">[http://www.underconsideration.com/brandnew/archives/verdanagate.php] – "Verdanagate," by "Armin" in "Brand New" blog, August 31, 2009</ref> |
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In September 2019, IKEA announced that they would be investing $2.8{{nbsp}}billion in renewable energy infrastructure. The company is targeting making their entire supply chain climate positive by 2030.<ref>{{cite web|url=https://qz.com/1712654/ikeas-retail-arm-is-investing-2-8-billion-in-renewable-energy/|title=IKEA is investing $2.8{{nbsp}}billion in renewable energy infrastructure|last=Quito|first=Anne|website=Quartz|date=21 September 2019|access-date=7 October 2019|archive-date=31 October 2020|archive-url=https://web.archive.org/web/20201031050154/https://qz.com/1712654/ikeas-retail-arm-is-investing-2-8-billion-in-renewable-energy/|url-status=live}}</ref> |
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Time magazine and the Associated Press ran articles on the controversy including a brief interview with an IKEA representative, focusing on the opinions of typographers and designers.<ref>[http://www.time.com/time/business/article/0,8599,1919127,00.html] – The Font War: Ikea Fans Fume over Verdana. Time, (August 28, 2009)</ref> Design and advertising industry-focused publications such as Business Week joined the fray of online posts. The branding critic blog, Brand New, was one of those using the "Verdanagate" name.<ref name="VGArmin" /> The Australian online daily news site ''[[Crikey]]'' also published an article on the controversy.<ref>Mel Campbell and Jeremy Wortsman, [http://www.crikey.com.au/2009/09/01/the-full-fonty-why-type-nerds-went-mental-over-ikea/ "The Full Fonty: Why Type Nerds Went Mental Over Ikea"], ''Crikey'', September 1, 2009</ref> ''The Guardian'' ran an article asking "Ikea is changing its font to Verdana – causing outrage among typomaniacs. Should the rest of us care? Absolutely."<ref>[http://www.guardian.co.uk/artanddesign/2009/sep/02/ikea-verdana-font Verdana: Ikea's flat-pack font], Simon Garfield, ''The Guardian'', 2 September 2009</ref> ''The New York Times'' said the change to Verdana "is so offensive to many because it seems like a slap at the principles of design by a company that has been hailed for its adherence to them."<ref>[http://www.nytimes.com/2009/09/05/arts/design/05ikea.html?pagewanted=1&_r=1&partner=rss&emc=rss "Typography Fans Say Ikea Should Stick to Furniture"], Edward Rothstein, ''The New York Times'', September 4, 2009</ref> |
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===Sourcing of wood=== |
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== Advertising == |
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[[File:IKEABerlin.JPG|thumb|right|German-Turkish advertisement in [[Berlin-Neukölln]]]] |
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The group is responsible for approximately 1% of world commercial-product wood consumption, making it the largest individual user of wood in the world.<ref name="tnr-romania" /><ref name="IKEA Group Sustainability Report FY13">[http://www.ikea.com/ms/en_US/pdf/sustainability_report/sustainability_report_2013.pdf IKEA Group Sustainability Report FY13] {{Webarchive|url=https://web.archive.org/web/20180107050510/http://www.ikea.com/ms/en_US/pdf/sustainability_report/sustainability_report_2013.pdf |date=7 January 2018 }}, Page 23. Retrieved 13 February 2014</ref> IKEA claims to use 99.5% recycled or [[Forest Stewardship Council|FSC]]-certified wood.<ref name="ikea-sustainability-report-2021">{{cite web |title=IKEA Sustainability Report FY21 |url=https://gbl-sc9u2-prd-cdn.azureedge.net/-/media/aboutikea/newsroom/publications/documents/ikea-sustainability-report-fy21.pdf?rev=6d09c40ec452441091b10d9212718192&hash=1A1FDACCB00D35EE9D64428D85CA6C4E |access-date=6 August 2022 |website=ikea.com |archive-date=23 May 2022 |archive-url=https://web.archive.org/web/20220523084830/https://gbl-sc9u2-prd-cdn.azureedge.net/-/media/aboutikea/newsroom/publications/documents/ikea-sustainability-report-fy21.pdf?rev=6d09c40ec452441091b10d9212718192&hash=1A1FDACCB00D35EE9D64428D85CA6C4E |url-status=live }}</ref> However, IKEA has been shown to be involved in unsustainable and most likely [[illegal logging]] of old-growth and protected forests in multiple Eastern European countries in recent years.<ref name="tnr-romania">{{cite magazine| title=Ikea's Race for the Last of Europe's Old-Growth Forest| url=https://newrepublic.com/article/165245/ikea-romania-europe-old-growth-forest| magazine=The New Republic| date=16 February 2022| publication-date=6 February 2022| access-date=22 July 2022| last1=Sammon| first1=Alexander| last2=Renault| first2=Marion| last3=Renault| first3=Marion| last4=Cummins| first4=Eleanor| last5=Cummins| first5=Eleanor| last6=Lee| first6=Kevin| last7=Lee| first7=Kevin| last8=Shapiro| first8=Walter| last9=Shapiro| first9=Walter| last10=Beyerstein| first10=Lindsay| last11=Beyerstein| first11=Lindsay| last12=Haas| first12=Lidija| last13=Haas| first13=Lidija| archive-date=22 July 2022| archive-url=https://web.archive.org/web/20220722121507/https://newrepublic.com/article/165245/ikea-romania-europe-old-growth-forest| url-status=live}}</ref><ref>{{cite web |author=Harvey |first=Fiona |author-link=Fiona Harvey |date=23 June 2020 |title=Timber from unsustainable logging allegedly being sold in EU as ethical |url=https://www.theguardian.com/environment/2020/jun/23/timber-unsustainable-logging-allegedly-sold-eu-ethical |url-status=live |archive-url=https://web.archive.org/web/20220815112329/http://www.theguardian.com/environment/2020/jun/23/timber-unsustainable-logging-allegedly-sold-eu-ethical |archive-date=15 August 2022 |access-date=22 July 2022 |website=The Guardian |publication-date=16 July 2021}}</ref><ref>{{cite news| title=Ikea sold children's furniture 'made of illegally-logged Russian wood'| author=Jane Dalton| url=https://www.independent.co.uk/climate-change/news/ikea-children-furniture-illegal-wood-b1884276.html| website=The Independent| publication-date=23 June 2020| access-date=22 July 2022| archive-date=7 July 2022| archive-url=https://web.archive.org/web/20220707060435/http://www.independent.co.uk/climate-change/news/ikea-children-furniture-illegal-wood-b1884276.html| url-status=live}}</ref> |
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In 1994, IKEA ran a commercial in the United States widely thought to be the first commercial featuring a homosexual couple; it aired for several weeks before being pulled due to bomb threats directed at IKEA stores.<ref>{{cite web|url=http://www.commercialcloset.org/common/adlibrary/adlibrarydetails.cfm?clientID=11064&QID=76 |title=''Dining Room Table'' IKEA advertisement |publisher=GLAAD |year=1994 |accessdate=June 10, 2009}}</ref> Other IKEA commercials feature the gay community, once featuring a [[transgender]] woman.<ref>{{cite web|url=http://www.commercialcloset.org/common/adlibrary/adlibrarydetails.cfm?clientID=11064&QID=546 |title=''Redecorate Your Life'' IKEA advertisement |publisher=GLAAD |year=1999 |accessdate=June 10, 2009}}</ref> |
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IKEA is the world's largest buyer and retailer of wood.<ref name="tnr-romania"/> In 2015, IKEA claimed to use 1% of the world's supply of timber.<ref>{{cite web |date=26 February 2015 |title=Making Solid Wood |url=http://www.ikea.com/us/en/about_ikea/newsitem/022615_pr_making-solid-wood |url-status=dead |archive-url=https://web.archive.org/web/20150419042236/http://www.ikea.com/us/en/about_ikea/newsitem/022615_pr_making-solid-wood |archive-date=19 April 2015 |website=ikea.com}}</ref> |
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In 2002, the inaugural television component of the "Unböring" campaign, titled ''[[Lamp (advertisement)|Lamp]]'', went on to win several awards, including a [[Clio awards|Grand Clio]],<ref>Eastwood, Allison; "[http://www.boardsmag.com/articles/online/20030522/clios.html MINI missing but "Lamp" shines at Clios]", ''Boards'', 22 May 2003. Retrieved 22 April 2010.</ref> Golds at the London International Awards<ref>"[http://2008.liaawards.com/2003/winners/tv/25.html Archive: 2003 Winners]", London International Awards, 2003. Retrieved 23 May 2010.</ref> and the ANDY Awards,<ref>"[http://www.andyawards.com/winners_2003/television2.php Archive: 2003 Winners]", ANDY Awards, 2003. Retrieved 23 May 2010.</ref> and the Grand Prix at the [[Cannes Lions International Advertising Festival]],<ref>Mutel, Glen; "[http://www.campaignlive.co.uk/news/183958/Surprise-Cannes-lamp-wins-Grand-Prix/ Surprise at Cannes as 'lamp' wins Grand Prix]", ''[[Campaign (magazine)|Campaign]]'', 27 June 2003. Retrieved 22 April 2010.</ref> the most prestigious awards ceremony in the advertising community. |
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According to IKEA's 2021 ''Sustainability Report'', 99.5% of all wood that the company uses is either recycled or meets the standards of the [[Forest Stewardship Council]]. IKEA states that "[a]ll wood used for IKEA products must meet our critical requirements that ensure it's not (e.g.) sourced from illegally harvested forests [...]".<ref name="ikea-sustainability-report-2021"/> However, despite these claims, IKEA has been involved in unsustainable and most likely illegal logging of wood in multiple Eastern European countries in recent years; see [[Criticism of IKEA#Wood sourcing practices|Criticism of IKEA]]. |
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IKEA launched a UK-wide "Home is the Most Important Place in the World" advertising campaign in September 2007 using estate agent signs with the term "Not For Sale" written on them as part of the wider campaign. After the campaign appeared in the [[Metro newspaper London]] the business news website www.mad.co.uk remarked that the IKEA campaign had amazing similarities with the marketing activity of UK home refurbishment company [[Onis living]] who had launched their own Not For Sale advertising campaign<ref>{{cite web|url=http://www.onisliving.co.uk/about-onis/not-for-sale.html |title=Our award winning campaign | Onis Home Refurbishments |publisher=Onisliving.co.uk |date= |accessdate=June 10, 2009}}</ref> two years prior and was awarded the Interbuild 2006 Construction Marketing Award for best campaign under £25,000.<ref>http://www.constructionmarketingawards.com/testimonials.html {{Dead link|date=June 2009}}</ref> |
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IKEA owns about 136,000 acres of forest in the US and about 450,000 acres in Europe.<ref>{{cite news |last1=Takahashi |first1=Paul |title=Ikea acquires 42,000 acres of forestland in East Texas |url=https://www.mysanantonio.com/business/retail/article/IKEA-acquires-42-000-acres-of-forestland-in-East-14853600.php |newspaper=Mysa |date=22 November 2019 |access-date=26 November 2019 |archive-date=1 August 2020 |archive-url=https://web.archive.org/web/20200801190708/https://www.mysanantonio.com/business/retail/article/IKEA-acquires-42-000-acres-of-forestland-in-East-14853600.php |url-status=live }}<!--455+125=580--></ref><ref>{{cite news |title=Ikea bought 11,000 acres of forest in Georgia to protect it from development |author=Alaa Elassar |date=31 January 2021 |website=CNN The Good Stuff |url=https://www.cnn.com/2021/01/31/us/ikea-forest-georgia-protect-trnd-scn/index.html |access-date=31 January 2021 |archive-date=1 February 2021 |archive-url=https://web.archive.org/web/20210201185131/https://www.cnn.com/2021/01/31/us/ikea-forest-georgia-protect-trnd-scn/index.html |url-status=live }}</ref> |
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[[File:Onis Not For Sale sign.jpg|thumb|Onis's Not For Sale sign.]] |
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A debate ensued between Fraser Patterson, Chief Executive of Onis and Andrew McGuinness, partner at [[Beattie McGuinness Bungay]] (BMB), the advertising and PR agency awarded the £12m IKEA account.<ref>{{cite web|url=http://www.mad.co.uk/BreakingNews/BreakingNews/Articles/bd5d7deae8ff43a0bbd83f8a9dc15ff3/Ikea-campaign-attracts-copycat-claims.html |title=Ikea campaign attracts copycat claims |publisher=Mad.co.uk |date=September 21, 2007 |accessdate=June 10, 2009}}</ref><ref>{{cite web|url=http://www.sundayherald.com/business/businessnews/display.var.1741413.0.ikeas_new_marketing_campaign_remarkably_similar_to_strategy_used_by_scotsled_firm.php |title=Ikea's new marketing campaign 'remarkably similar' to strategy used by Scots-led firm |publisher=Sundayherald.com |date= |accessdate=June 10, 2009 |archiveurl = http://web.archive.org/web/20071011011621/http://www.sundayherald.com/business/businessnews/display.var.1741413.0.ikeas_new_marketing_campaign_remarkably_similar_to_strategy_used_by_scotsled_firm.php |archivedate = October 11, 2007}}</ref> The essence of the debate was that BMB claimed to be unaware of Onis's campaign as Onis were not an advertising agency. Onis's argument was that their advertising could be seen in prominent landmarks throughout London, having been already accredited, showing concern about the impact IKEA's campaign would have on the originality of their own. |
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On 14 January 2021, IKEA announced that Ingka Investments had acquired approximately 10,840 acres (4,386 hectares) near the [[Altamaha River]] Basin in the U.S. state of [[Georgia (U.S. state)|Georgia]] from [[The Conservation Fund]]. The acquisition comes with the agreement "to protect the land from fragmentation, restore the longleaf pine forest, and safe-guard the habitat of the gopher tortoise".<ref>{{cite web |title=Ingka Investments acquires forestland in United States from The Conservation Fund |url=https://www.ikea.com/us/en/this-is-ikea/newsroom/ingka-investments-acquires-forestland-in-united-states-from-the-conservation-fund-pub70656d40 |access-date=2 February 2021 |website=ikea.com |archive-date=31 January 2021 |archive-url=https://web.archive.org/web/20210131194127/https://www.ikea.com/us/en/this-is-ikea/newsroom/ingka-investments-acquires-forestland-in-united-states-from-the-conservation-fund-pub70656d40 |url-status=live }}</ref><ref>{{cite news |title=Ikea bought 11,000 acres of forest in Georgia to protect it from development |url=https://www.cnn.com/2021/01/31/us/ikea-forest-georgia-protect-trnd-scn/index.html |date=31 January 2021 |last=Elassar |first=Alaa |publisher=CNN |access-date=2 February 2021 |archive-date=1 February 2021 |archive-url=https://web.archive.org/web/20210201185131/https://www.cnn.com/2021/01/31/us/ikea-forest-georgia-protect-trnd-scn/index.html |url-status=live }}</ref> |
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After some negotiations BMB and IKEA agreed to provide Onis with a feature page on [http://www.notgoinganywhere.co.uk the IKEA campaign site] linking through to [http://www.onishome.co.uk Onis's .co.uk site], for a period of 1 year. Onis is possibly the only company to have ever been advertised by IKEA in such a fashion. In 2008, Onis Homes limited was placed into [[voluntary liquidation]] and the website www.onishome.com closed. |
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IKEA is reported to be the largest private landowner in Romania since 2015.<ref name="tnr-romania"/> |
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The Intellectual Property and trading rights of Onis Homes Limited were later purchased by new shareholders with the strategy to grow the Onis brand throughout the U.K as a one stop shop home refurbishment [[franchising|franchise]] using the trading name [[Onis living]]. |
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===Use of wood=== |
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IKEA recently paired up with the makers of popular video game [[The Sims 2]] to make a stuff pack called [[The Sims 2 Stuff packs#IKEA Home Stuff|The Sims 2 IKEA Home Stuff]], featuring many IKEA products. It was released on June 24, 2008 in North America and June 26, 2008 in Europe. It is the second stuff pack with a major brand, the first being [[The Sims 2 Stuff packs#H&M Fashion Stuff|The Sims 2 H&M Fashion Stuff]], which are both coincidentally companies of Swedish origin. |
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In 2011, the company examined its wood consumption and noticed that almost half of its global pine and spruce consumption was for the fabrication of [[pallets]]. The company consequently started a transition to the use of paper pallets and the "Optiledge system".<ref>{{cite web|title=IKEA Phases Out Wood Pallets|url=http://packagingrevolution.net/ikea-phases-out-wood-pallets/|publisher=Packaging Revolution|date=3 November 2011|access-date=26 February 2013|archive-date=21 October 2020|archive-url=https://web.archive.org/web/20201021014658/https://packagingrevolution.net/ikea-phases-out-wood-pallets/|url-status=live}}</ref> The OptiLedge product is totally recyclable, made from 100% virgin high-impact [[copolymer]] polypropylene (PP) plastic. The system is a "unit load alternative to the use of a pallet. The system consists of the OptiLedge (usually used in pairs), aligned and strapped to the bottom carton to form a base layer upon which to stack more products. Corner boards are used when strapping to minimize the potential for package compression." The conversion began in Germany and Japan, before its introduction into the rest of Europe and North America.<ref>{{cite web|title=The OptiLedge Offers Efficiencies for International Shipments|url=http://packagingrevolution.net/the-optiledge-offers-efficiencies-for-international-shipments/|publisher=Packaging Revolution|date=8 December 2011|access-date=26 February 2013|archive-date=21 October 2020|archive-url=https://web.archive.org/web/20201021012438/https://packagingrevolution.net/the-optiledge-offers-efficiencies-for-international-shipments/|url-status=live}}</ref> The system has been marketed to other companies, and IKEA has formed the OptiLedge company to manage and sell the product.<ref>{{cite web|title=OptiLedge|url=http://www.optiledge.com/|publisher=Inter IKEA Systems B.V.|year=2012|access-date=26 February 2013|archive-date=24 November 2020|archive-url=https://web.archive.org/web/20201124083200/http://optiledge.com/|url-status=live}}</ref> |
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===Packaging and bags=== |
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IKEA has taken over title sponsorship of Philadelphia's annual [[6abc Ikea Thanksgiving Day Parade|Thanksgiving Day parade]] in 2008, replacing [[Boscov's]], who filed for bankruptcy in August 2008. |
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Since March 2013, IKEA has stopped providing [[plastic bag]]s to customers, but offers [[Reusable shopping bag|reusable bags]] for sale.<ref>[https://www.ikea.com/sg/en/files/pdf/2e/9d/2e9d0074/ikea-to-do-away-with-disposable-shopping-bags.pdf IKEA to do away with disposable shopping bags] {{Webarchive|url=https://web.archive.org/web/20240224193215/https://www.ikea.com/sg/en/files/pdf/2e/9d/2e9d0074/ikea-to-do-away-with-disposable-shopping-bags.pdf |date=28 August 2020 }} (Jan 2013)</ref> The IKEA restaurants also only offer reusable plates, knives, forks, spoons, etc. Toilets in some IKEA WC-rooms have been outfitted with [[dual flush toilet|dual-function flushers]]. IKEA has recycling bins for [[compact fluorescent lamps]] (CFLs), energy-saving bulbs, and batteries. |
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In 2001, IKEA was one of the first companies to operate its own cross-border goods trains through several countries in Europe.<ref>{{cite web|url=http://www.cisionwire.com/banverket/ikea-leads-the-way-on-deregulated-european-railways |archive-url= https://archive.today/20120731170858/http://www.cisionwire.com/banverket/ikea-leads-the-way-on-deregulated-european-railways |url-status=dead |archive-date=31 July 2012 |title=Banverket – press release |publisher=Cision Wire |date=29 June 2001 }}</ref> |
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In November 2008, a subway train decorated in IKEA style [http://metkere.com/2008/11/ikea.html was introduced] in [[Novosibirsk]], Russia. Four cars were turned into a mobile showroom of the Swedish design. The redesigned train, which features colourful seats and fancy curtains, carried passengers until June 6, 2009. |
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===Electric vehicles=== |
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[[Oyster card]]s (the ticket-free system for [[London Underground]]) are now given with wallets sponsored by IKEA who also sponsor the [[tube map]]. |
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IKEA has expanded its sustainability plan in the UK to include electric car charge points for customers at all locations by the end of 2013.<ref>{{cite web|last=Briggs|first=Fiona|title=Ikea becomes first retailer to install electric vehicle rapid chargers at all UK stores|url=http://www.retailtimes.co.uk/ikea-becomes-first-retailer-install-electric-vehicle-rapid-chargers-uk-stores/|publisher=Retail Times|access-date=13 November 2013|archive-date=9 August 2020|archive-url=https://web.archive.org/web/20200809073311/https://www.retailtimes.co.uk/ikea-becomes-first-retailer-install-electric-vehicle-rapid-chargers-uk-stores/|url-status=live}}</ref>{{Update inline|date=April 2022}} The effort will include [[Nissan]] and [[Ecotricity]] and promise to deliver an 80% charge in 30 minutes.<ref>{{cite web|last=Murray|first=James|title=IKEA promises rapid rollout of electric car chargers|url=http://www.businessgreen.com/bg/news/2306219/ikea-promises-rapid-rollout-of-electric-car-chargers|publisher=Business Green|access-date=13 November 2013|date=12 November 2013|archive-date=1 January 2020|archive-url=https://web.archive.org/web/20200101005036/https://www.businessgreen.com/bg/news/2306219/ikea-promises-rapid-rollout-of-electric-car-chargers|url-status=live}}</ref> |
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From 2016, IKEA has only sold energy-efficient [[LED lightbulb]]s, lamps and light fixtures. LED lightbulbs use as little as 15% of the power of a regular [[incandescent light bulb]].<ref>{{cite web |url=http://www.ikea.com/ms/en_GB/about-the-ikea-group/people-and-planet/sustainable-life-at-home/ |title=Make a difference without leaving your home |publisher=IKEA UK |access-date=17 February 2014 |archive-date=1 January 2020 |archive-url=https://web.archive.org/web/20200101003521/https://www.ikea.com/ms/en_GB/about-the-ikea-group/people-and-planet/sustainable-life-at-home/ |url-status=dead }}</ref> |
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[[File:Red Osprey in IKEA livery.JPG|thumb|The Isle of Wight ferry ''Red Osprey'' in her IKEA livery.]] |
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In January 2009, just before the new store opened in [[Southampton]], the [[MV Red Osprey]] of [[Red Funnel]] was re-painted in an entirely yellow and blue livery to celebrate the opening of the new IKEA store in Southampton. This is the first time a Red Funnel ferry has been re-painted out of its own red and white colour scheme. It stayed in these colours for 12 months as part of a deal between Red Funnel and IKEA to provide home delivery services to the [[Isle of Wight]]. It was repainted with Red Funnel's red and white livery when the deal ended in January 2010. |
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==Donations made by IKEA== |
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In March 2010, IKEA developed an event in four important metro stations in Paris, in which furniture collections are displayed in high-traffic spots, giving potential customers a chance to check out the brand's products. The subway walls were also filled with prints that showcase IKEA interiors. |
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The [[Stichting INGKA Foundation|INGKA Foundation]] is officially dedicated to promoting "innovations in architecture and interior design".<ref name="Economist, May 11, 2006" /> The net worth of the foundation exceeded the net worth of the much better known [[Bill & Melinda Gates Foundation]] (now the largest private foundation in the world) for a period.<ref name="FoundationFactSheet">{{cite web|url=http://www.gatesfoundation.org/Who-We-Are/General-Information/Foundation-Factsheet|title=Foundation Fact Sheet|publisher=[[Bill & Melinda Gates Foundation]]|access-date=9 March 2007|archive-date=26 February 2013|archive-url=https://web.archive.org/web/20130226015506/http://www.gatesfoundation.org/Who-We-Are/General-Information/Foundation-Factsheet|url-status=live}}</ref> However, most of the Group's profit is spent on investment. |
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IKEA is involved in several international charitable causes, particularly in partnership with [[UNICEF]], including: |
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In September 2010, IKEA launched an advertisement for UK & Ireland called "Happy Inside" which had 100 cats lying on IKEA furniture in the flagship IKEA store in [[Wembley]], London.<ref>{{cite web|author=“” |url=http://www.youtube.com/watch?v=Z7vXP3tHzhA |title=Happy Inside – IKEA cats advert |publisher=YouTube |date=September 10, 2010 |accessdate=December 26, 2010}}</ref> |
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* In the wake of the [[2004 Indian Ocean earthquake and tsunami]], IKEA Australia agreed to match dollar for dollar co-workers' donations and donated all sales of the IKEA Blue Bag to the cause. |
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* After the [[2005 Kashmir earthquake]], IKEA gave 500,000 blankets to the relief effort in the region.<ref>{{cite web|url=http://www.dailytimes.com.pk/default.asp?page=2006%5C01%5C04%5Cstory_4-1-2006_pg7_29|title=Quake children at greater risk after rain, snowfall: UN|access-date=27 October 2007|archive-date=8 September 2012|archive-url=https://archive.today/20120908121255/http://www.dailytimes.com.pk/default.asp?page=2006%5C01%5C04%5Cstory_4-1-2006_pg7_29|url-status=live}}</ref> |
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* IKEA has provided furniture for over 100 "bridge schools" in Liberia.<ref>{{cite web|url=http://www.unicef.org/infobycountry/liberia_27130.html|title=IKEA donates 9,000 tables for Liberia's schools and health centres|publisher=Unicef.org|access-date=10 June 2009|archive-date=11 June 2009|archive-url=https://web.archive.org/web/20090611030948/http://www.unicef.org/infobycountry/liberia_27130.html|url-status=dead}}</ref> |
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* Following the [[2008 Sichuan earthquake]] in China, IKEA Beijing sold an alligator toy for 40 [[renminbi|yuan]] (US$5.83, €3.70) with all income going to the children in the earthquake struck area. |
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* In 2013, IKEA donated more than $2.6{{nbsp}}million to UNICEF to help children and families affected by [[Typhoon Haiyan]] in the Philippines. |
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IKEA also supports [[American Forests]] to restore forests and reduce pollution.<ref>{{cite web|url=http://www.ikea.com/us/en/about_ikea/newsitem/Plant_A_Tree_Release_092611|title=Plant Trees|publisher=IKEA|date=12 June 2006|access-date=10 June 2009|archive-date=19 October 2011|archive-url=https://web.archive.org/web/20111019121823/http://www.ikea.com/us/en/about_ikea/newsitem/Plant_A_Tree_Release_092611|url-status=live}}</ref><ref>{{cite web|url=http://www.americanforests.org/newsroom/ikea-in-partnership-with-american-forests-announces-the-planting-of-2-million-trees-across-america/|title=American Forests|publisher=American Forests|access-date=27 September 2010|url-status=dead|archive-url=https://web.archive.org/web/20121101080938/http://www.americanforests.org/newsroom/ikea-in-partnership-with-american-forests-announces-the-planting-of-2-million-trees-across-america/|archive-date=1 November 2012}}</ref> |
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In April 2011, an advertising campaign for which aims to discover whether men or women are messier in the home launched. Created by Mother, the campaign will begin with a TV advert shot in front of a live audience, featuring four stand-up comedians, two men and two women, having the debate over which gender is the messiest. The strategy behind the campaign is that domestic clutter leads to arguments, leading to an unhappy home, which Ikea wants to prove can be avoided with better storage. Viewers will be directed to a new Facebook page for the brand, where they are able to vote as to who they believe is the messiest, and submit proof using videos and photos through an app created especially for the campaign. Meanwhile, online display banners will allow off users the opportunity to vote, with online adverts promoting Ikea products also demonstrating the problems people have shared, and offering solutions. |
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On 3 March 2022, IKEA announced €20{{nbsp}}million donation to [[UNHCR]] for relief support of Ukrainians who suffer from the [[2022 Russian invasion of Ukraine]].<ref>{{cite web |
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Anna Crona, marketing director at IKEA UK and Ireland, explained: "We are committed to understating how our customers live life at home so we can provide solutions to make life happier. Everybody has storage needs in the home and by encouraging debate and providing solutions we will show that IKEA is relevant to everybody, no matter what your home is like or how much money you have." Press adverts will also support the campaign, as will a handbook entitled "Peace, Love and Storage", which will be available through the Facebook site.<ref>http://www.brandrepublic.com/bulletin/brandrepublicnewsbulletin/article/1063045/ikea-rolls-battle-sexes-campaign/</ref> |
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|author = Amiah Taylor |
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|url = https://fortune.com/2022/03/07/google-poland-office-ukraine-aid-russia-invasion/ |
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|title = Google transforms Poland office into help center for Ukrainian refugees |
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|publisher = Fortune |
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|date = 7 March 2022 |
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|access-date = 8 March 2022 |
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|archive-date = 7 March 2022 |
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|archive-url = https://web.archive.org/web/20220307174624/https://fortune.com/2022/03/07/google-poland-office-ukraine-aid-russia-invasion/ |
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|url-status = live |
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}}</ref><ref>{{cite book |
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|author = Justin Klawans |
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|url = https://www.newsweek.com/swedish-company-ikea-latest-global-brand-donate-ukrainian-relief-1684721 |
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|title = Swedish Company IKEA Is Latest Global Brand to Donate to Ukrainian Relief |
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|publisher = Newsweek |
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|date = 3 March 2022 |
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|access-date = 9 February 2022 |
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|archive-date = 3 March 2022 |
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|archive-url = https://web.archive.org/web/20220303232058/https://www.newsweek.com/swedish-company-ikea-latest-global-brand-donate-ukrainian-relief-1684721 |
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|url-status = live |
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}}</ref> |
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IKEA donated €10 million to [[Médecins Sans Frontières|Doctors Without Borders]] for its work in Syria in response to the [[2023 Turkey–Syria earthquake]].<ref>{{cite news |url=https://apnews.com/article/politics-syria-government-turkey-business-435d133d501e350a2e518623824afbf6 |title=Fundraisers for Syria, Turkey earthquake try to deliver aid |last=Beaty |first=Thalia |work=Associated Press News |date=11 February 2023 |access-date=12 February 2023 |archive-date=12 February 2023 |archive-url=https://web.archive.org/web/20230212120815/https://apnews.com/article/politics-syria-government-turkey-business-435d133d501e350a2e518623824afbf6 |url-status=live }}</ref> |
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In August 2011, IKEA launched a first advertisement for Thailand in [[Sukhumvit Station|Sukhumvit]], [[Bangkok Metro]] Station. The advertisement has shown a box and a manual of POANG product, and shown a slogan of company "A better everyday life at home". |
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===IKEA Social Initiative=== |
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==Awards== |
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In September 2005, IKEA Social Initiative was formed to manage the company's social involvement on a global level. IKEA Social Initiative is headed by Marianne Barner.<ref>{{cite web |title=Social initiatives |url=https://ikeamuseum.com/en/digital/the-story-of-ikea/social-initiatives/ |access-date=1 June 2022 |website=IKEA Museum|archive-date=5 July 2022 |archive-url=https://web.archive.org/web/20220705193337/https://ikeamuseum.com/en/digital/the-story-of-ikea/social-initiatives/ |url-status=live }}</ref> |
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IKEA was named one of the 100 Best Companies for Working Mothers in 2004 and 2005 by ''Working Mothers'' magazine. It ranked 96 in Fortune's 100 Best Companies to Work For in 2006 and in October 2008, IKEA Canada LP was named one of "[[Canada's Top 100 Employers]]" by Mediacorp Canada Inc., and was featured in ''[[Maclean's]]'' newsmagazine.<ref>{{cite web|url=http://www.eluta.ca/top-employer-ikea-canada|title=Reasons for Selection, 2009 Canada's Top 100 Employers Competition}}</ref> |
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The main partners of IKEA Social Initiative are UNICEF<ref>{{cite web|url=http://www.unicef.org/corporate_partners/index_25092.html|title=UNICEF's corporate partnerships|publisher=Unicef.org|access-date=26 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20110225143122/http://www.unicef.org/corporate_partners/index_25092.html|archive-date=25 February 2011}}</ref> and [[Save the Children]].<ref>{{Cite web|url=http://www.savethechildren.net/alliance/corporate/corp_ikea/ikea_index3.html|archive-url=https://web.archive.org/web/20090816184854/http://www.savethechildren.net/alliance/corporate/corp_ikea/ikea_index3.html|url-status=dead|title=IKEA and IKEA Foundation {{pipe}} Save the Children International|archive-date=16 August 2009}}</ref> |
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== IKEA in pop culture == |
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On 23 February 2009, at the [[ECOSOC]] event in New York, UNICEF announced that IKEA Social Initiative has become the agency's largest corporate partner, with total commitments of more than US$180{{nbsp}}million (£281,079,000).<ref>UNICEF (23 February 2009) [http://www.unicef.org/media/media_48176.html IKEA social initiative adds $48{{nbsp}}million to UNICEF's child health programme] {{Webarchive|url=https://web.archive.org/web/20110210192048/http://www.unicef.org/media/media_48176.html |date=10 February 2011 }}</ref><ref>Reuters India (23 February 2009) [http://in.reuters.com/article/topNews/idINIndia-38166220090223 Ikea gives UNICEF $48 mln to fight India child labour] {{Webarchive|url=https://web.archive.org/web/20090818013839/http://in.reuters.com/article/topNews/idINIndia-38166220090223 |date=18 August 2009 }}</ref> |
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Comedienne [[Amy Poehler]] once argued that IKEA is Swedish for "argument," owing to the difficulty of furniture assembly.<ref name="TNY"/> |
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Examples of involvements: |
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In [[David Fincher]]'s 1999 movie, ''[[Fight Club]]'' the character played by [[Ed Norton]] flips through IKEA catalogue while sitting on the toilet.<ref name="TNY"/> |
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* The IKEA Social Initiative contributes €1 (£1.73) to UNICEF and [[Save the Children]] from each soft toy sold during the holiday seasons, raising a total of €16.7{{nbsp}}million (£28.91{{nbsp}}million) so far.<ref>{{cite web|url=http://www.ivyroses.com/Health/IKEA-Soft-Toy-campaign|title=UNICEF: IKEA Soft Toy campaign raises €5.4{{nbsp}}million for education projects|access-date=27 May 2016|archive-date=9 April 2016|archive-url=https://web.archive.org/web/20160409010516/http://www.ivyroses.com/Health/IKEA-Soft-Toy-campaign|url-status=live}}</ref> In 2013, an IKEA soft toy, [[Lufsig]], created a storm and sold out in Hong Kong and in Southern China because it had been misnamed in Chinese.<ref name="20131210mcbain">McBain, Sophie (10 December 2013). [http://www.newstatesman.com/business/2013/12/how-lufsig-cuddly-wolf-became-hong-kong-protest-symbol "How Lufsig the cuddly wolf became a Hong Kong protest symbol – A short lesson in the art of mistranslating names into Chinese."] {{Webarchive|url=https://web.archive.org/web/20161130153502/http://www.newstatesman.com/business/2013/12/how-lufsig-cuddly-wolf-became-hong-kong-protest-symbol |date=30 November 2016 }} ''The New Statesman''.</ref> |
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* The IKEA Social Initiative provided soft toys to children in Burma after [[Cyclone Nargis]].<ref>{{cite web|url=http://reliefweb.int/report/myanmar/ikea-provides-soft-toys-children-cyclone-affected-myanmar |title=Save the Children: Ikea Provides Soft Toys to Children in Cyclone-Affected Myanmar |url-status=dead |archive-url=https://web.archive.org/web/20150216080153/http://reliefweb.int/report/myanmar/ikea-provides-soft-toys-children-cyclone-affected-myanmar |archive-date=16 February 2015 }}</ref> |
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* Starting in June 2009, for every Sunnan solar-powered lamp sold in IKEA stores worldwide, IKEA Social Initiative will donate one Sunnan with the help of UNICEF.<ref>{{cite news |url=https://www.reuters.com/article/pressRelease/idUS99995+21-Jul-2009+PRN20090721 |archive-url=https://wayback.archive-it.org/all/20100122084116/http://www.reuters.com/article/idUS99995+21-Jul-2009+PRN20090721 |url-status=dead |archive-date=22 January 2010 |title=Reuters / PR Newswire: Sunny News: IKEA and UNICEF Lighten Up Children's Lives in the Developing World |date=21 July 2009 }}</ref> |
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* In September 2011,<ref>{{cite web|author=UNHCR: The UN Refugee Agency (Thailand) |url=http://unhcr.or.th/news/general/727 |title=Ikea Foundation gives UNHCR US$62{{nbsp}}million for Somali refugees in Kenya {{pipe}} UNHCR: The UN Refugee Agency (Thailand) |publisher=UNHCR |date=2 September 2011 |access-date=28 January 2013 |url-status=dead |archive-url=https://web.archive.org/web/20120611182505/http://www.unhcr.or.th/news/general/727 |archive-date=11 June 2012 }}</ref> the IKEA Foundation pledged to donate $62{{nbsp}}million to help Somali refugees in Kenya.<ref name="TNY" /> |
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* According to ''[[The Economist]]'', however, IKEA's charitable giving is meager, "barely a rounding error in the foundation's assets".<ref name="TNY" /> |
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In 2009, Sweden's largest television station, [[Sveriges Television|SVT]], revealed that IKEA's money—the three per cent collection from each store—does not actually go to a charitable foundation in the Netherlands, as IKEA has said. Inter IKEA is owned by a foundation in [[Liechtenstein]], called Interogo, which has amassed $12{{nbsp}}billion (£18{{nbsp}}billion), and is controlled by the Kamprad family.<ref name="TNY" /> |
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Musician [[Jonathan Coulton]] wrote a song titled ''IKEA''. |
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==Marketing== |
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IKEA is parodied in two episodes of [[The Simpsons]] as a Danish store named Shøp. |
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===Catalogue=== |
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{{Main|IKEA Catalogue}} |
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IKEA used to publish an annual catalogue, first published in Swedish in 1951.<ref>{{cite web |title=IKEA History |url=http://www.ikea.com/ms/en_AU/about_ikea/the_ikea_way/history/1940_1950.html |access-date=22 March 2010 |archive-date=30 March 2010 |archive-url=https://web.archive.org/web/20100330210038/http://www.ikea.com/ms/en_AU/about_ikea/the_ikea_way/history/1940_1950.html |url-status=dead }}</ref> It is considered to be the main marketing tool of the company, consuming 70% of its annual marketing budget.<ref>{{cite web|title=IKEA Reinvents the Catalog|url=https://www.executiveboard.com/blogs/ikea-reinvents-the-catalog/|access-date=16 February 2015|archive-date=16 February 2015|archive-url=https://web.archive.org/web/20150216074212/https://www.executiveboard.com/blogs/ikea-reinvents-the-catalog/|url-status=dead}}</ref> The catalogue is distributed both in stores and by mail,<ref>{{cite web |title=IKEA FAQ |url=http://www.ikea.com/us/en/customerservices/faq#faqAnswers1-9#0100 |access-date=16 February 2015 |archive-url=https://web.archive.org/web/20150208040147/http://www.ikea.com/us/en/customerservices/faq#faqAnswers1-9 |archive-date=8 February 2015 |url-status=dead }}</ref> with most of it being produced by IKEA Communications AB in IKEA's hometown of [[Älmhult Municipality|Älmhult]], Sweden.<ref>{{cite web|title=2003 IKEA Catalogue printable facts|url=http://www.ikea.com/ms/en_GB/about_ikea/press_room/thecatalogue.pdf|url-status=dead|archive-url=https://web.archive.org/web/20050214031239/http://www.ikea.com/ms/en_GB/about_ikea/press_room/thecatalogue.pdf|archive-date=14 February 2005}}</ref> At its peak in 2016, 200{{nbsp}}million copies of the catalogue were distributed in 32 languages to more than 50 markets.<ref>{{cite web|year=2020|title=After 70 years, IKEA turning the page on the Catalog|url=https://www.ikea.com/us/en/this-is-ikea/newsroom/after-70-successful-years-ikea-is-turning-the-page-on-the-catalog-pubad91dde0|url-status=live|archive-url=https://web.archive.org/web/20201213071518/https://www.ikea.com/us/en/this-is-ikea/newsroom/after-70-successful-years-ikea-is-turning-the-page-on-the-catalog-pubad91dde0|archive-date=13 December 2020|access-date=2 January 2021|website=ikea.com}}</ref> In December 2020, IKEA announced that they would cease publication of both the print and digital versions of the catalogue, with the 2021 edition (released in 2020) being the final edition.<ref name=":02">{{Cite news|last=Ringstrom|first=Anna|date=7 December 2020|title=IKEA turns the page on catalogue after seven decades|work=Reuters|url=https://www.reuters.com/article/ikea-catalogue-idINL1N2IN0TN|url-status=live|access-date=2 January 2021|archive-url=https://web.archive.org/web/20210102072123/https://www.reuters.com/article/ikea-catalogue/update-1-ikea-turns-the-page-on-catalogue-after-seven-decades-idINL1N2IN0TN|archive-date=2 January 2021}}</ref> |
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[[Molly Shannon]]'s character in the film ''[[Night at the Roxbury]]'' talks about getting office furniture from IKEA while engaged in sex. |
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===IKEA Family=== |
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In the episode "[[Less Than Hero]]" from the fourth season of ''[[Futurama]]'', [[Professor Farnsworth]] orders a [[particle accelerator|supercollider]] from IKEA (re-branded as "πKEA" for the show). The robot that delivers it is built in the style of the company's furniture, but begins to fall apart on its way out the door. |
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[[File:IKEA Family card from Canada.jpg|thumb|The IKEA Family card, issued in Canada, {{circa|2012}}]] |
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In common with some other retailers, IKEA launched a [[loyalty card]] called "IKEA Family". The card is free of charge and can be used to obtain discounts on certain products found in-store. It is available worldwide. In conjunction with the card, IKEA also publishes and sells a printed quarterly magazine titled ''IKEA Family Live'' which supplements the card and catalogue. The magazine is already printed in thirteen languages and an English edition for the United Kingdom was launched in February 2007. It is expected to have a subscription of over 500,000.<ref>{{cite web|author=Daniel Farey-Jones|title=Ikea to introduce UK magazine in February|url=http://www.brandrepublic.com/bulletins/media/article/567690/ikea-introduce-uk-magazine-february/|url-status=dead|archive-url=https://web.archive.org/web/20071130103135/http://www.brandrepublic.com/bulletins/media/article/567690/ikea-introduce-uk-magazine-february/|archive-date=30 November 2007}}</ref> |
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===IKEA Place app=== |
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On 12 September 2017, IKEA announced the augmented reality app, IKEA Place, following by Apple's release of its ARkit technology and [[iOS 11]].<ref>{{Cite news|url=https://www.wired.com/story/ikea-place-ar-kit-augmented-reality/|title=Ikea's New App Flaunts What You'll Love Most About AR|last=Pardes|first=Arielle|date=20 September 2017|magazine=[[Wired (magazine)|Wired]]|access-date=5 December 2017|archive-date=6 December 2017|archive-url=https://web.archive.org/web/20171206161526/https://www.wired.com/story/ikea-place-ar-kit-augmented-reality/|url-status=live}}</ref> IKEA Place helps consumers to visualize true to scale IKEA products into real environment.<ref>{{Cite news|url=https://money.cnn.com/2017/08/29/technology/apple-augmented-reality/index.html|title=Apple teases the future of augmented reality apps|last=Regan|first=Jack|date=29 August 2017|work=[[CNNMoney]]|access-date=5 December 2017|archive-date=6 December 2017|archive-url=https://web.archive.org/web/20171206141230/http://money.cnn.com/2017/08/29/technology/apple-augmented-reality/index.html|url-status=live}}</ref> |
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===Advertising=== |
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In 1994, IKEA ran a commercial in the United States, titled ''[[Dining Room (advertisement)|Dining Room]]'', widely thought to be the first to feature a homosexual couple; it aired for several weeks before being withdrawn after calls for a boycott and a bomb threat directed at IKEA stores.<ref>{{cite web|url=http://www.commercialcloset.org/common/adlibrary/adlibrarydetails.cfm?clientID=11064&QID=76 |title=''Dining Room Table'' Ikea advertisement |publisher=AdRespect Advertising Education Program |year=1994 |access-date=10 June 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090926070118/http://www.commercialcloset.org/common/adlibrary/adlibrarydetails.cfm?clientID=11064&QID=76 |archive-date=26 September 2009 }}</ref> Other IKEA commercials appeal to the wider [[LGBTQ]] community, one featuring a [[transgender]] woman.<ref>{{cite web|url=http://www.commercialcloset.org/common/adlibrary/adlibrarydetails.cfm?clientID=11064&QID=546|title=''Redecorate Your Life'' IKEA advertisement|publisher=AdRespect Advertising Education Program|year=1999|access-date=10 June 2009|archive-date=17 September 2009|archive-url=https://web.archive.org/web/20090917141037/http://www.commercialcloset.org/common/adlibrary/adlibrarydetails.cfm?clientID=11064&QID=546|url-status=dead}}</ref> |
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[[File:IKEABerlin.JPG|thumb|upright|German-Turkish advertisement in [[Berlin-Neukölln]]]] |
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In 2002, the inaugural television component of the "Unböring" campaign, titled ''[[Lamp (advertisement)|Lamp]]'', went on to win several awards, including a [[Clio Awards|Grand Clio]],<ref>Eastwood, Allison; "[http://www.boardsmag.com/articles/online/20030522/clios.html MINI missing but "Lamp" shines at Clios] {{webarchive|url=https://web.archive.org/web/20110814124114/http://www.boardsmag.com/articles/online/20030522/clios.html |date=14 August 2011 }}", ''Boards'', 22 May 2003. Retrieved 22 April 2010.</ref> Golds at the London International Awards<ref>{{cite web |url=http://2008.liaawards.com/2003/winners/tv/25.html |title=Archive: 2003 Winners, London International Awards |publisher=2008.liaawards.com |access-date=13 June 2013 |archive-url=https://web.archive.org/web/20140312033811/http://2008.liaawards.com/2003/winners/tv/25.html |archive-date=12 March 2014 |url-status=dead}}</ref> and the ANDY Awards,<ref>{{cite web|url=http://www.andyawards.com/winners_2003/television2.php |title=Archive: 2003 Winners, ANDY Awards |publisher=Andyawards.com |access-date=13 June 2013 |url-status=dead |archive-url=https://web.archive.org/web/20120723191839/http://www.andyawards.com/winners_2003/television2.php |archive-date=23 July 2012 }}</ref> and the Grand Prix at the [[Cannes Lions International Advertising Festival]],<ref>Mutel, Glen; "[http://www.campaignlive.co.uk/news/183958/Surprise-Cannes-lamp-wins-Grand-Prix/ Surprise at Cannes as 'lamp' wins Grand Prix] {{Webarchive|url=https://web.archive.org/web/20110809235526/http://www.campaignlive.co.uk/news/183958/Surprise-Cannes-lamp-wins-Grand-Prix/ |date=9 August 2011 }}", ''[[Campaign (magazine)|Campaign]]'', 27 June 2003. Retrieved 22 April 2010.</ref> the most prestigious awards ceremony in the advertising community. |
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A debate ensued between Fraser Patterson, Chief Executive of Onis, and Andrew McGuinness, partner at [[Beattie McGuinness Bungay]] (BMB), the advertising and PR agency that was awarded the £12 million IKEA account.<ref>{{cite web|url=http://www.mad.co.uk/BreakingNews/BreakingNews/Articles/bd5d7deae8ff43a0bbd83f8a9dc15ff3/Ikea-campaign-attracts-copycat-claims.html |title=Ikea campaign attracts copycat claims |publisher=Mad.co.uk |date=21 September 2007 |access-date=10 June 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090511055001/http://www.mad.co.uk/BreakingNews/BreakingNews/Articles/bd5d7deae8ff43a0bbd83f8a9dc15ff3/Ikea-campaign-attracts-copycat-claims.html |archive-date=11 May 2009 }}</ref><ref>{{cite web|url=http://www.sundayherald.com/business/businessnews/display.var.1741413.0.ikeas_new_marketing_campaign_remarkably_similar_to_strategy_used_by_scotsled_firm.php|title=Ikea's new marketing campaign 'remarkably similar' to strategy used by Scots-led firm|work=Sunday Herald|access-date=10 June 2009|archive-url=https://web.archive.org/web/20071011011621/http://www.sundayherald.com/business/businessnews/display.var.1741413.0.ikeas_new_marketing_campaign_remarkably_similar_to_strategy_used_by_scotsled_firm.php|archive-date=11 October 2007}}</ref> The essence of the debate was that BMB claimed to be unaware of Onis's campaign as Onis was not an advertising agency. Onis's argument was that its advertising could be seen in prominent landmarks throughout London, having been already accredited, showing concern about the impact IKEA's campaign would have on the originality of its own. BMB and IKEA subsequently agreed to provide Onis with a feature page on the IKEA campaign site linking through to Onis's website for a period of one year. |
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In 2008, IKEA paired up with the makers of video game ''[[The Sims 2]]'' to make a [[The Sims 2 Stuff packs|stuff pack]] called ''IKEA Home Stuff'', featuring many IKEA products. It was released on 24 June 2008 in North America and 26 June 2008 in Europe. It is the second stuff pack with a major brand, the first being ''[[The Sims 2 Stuff packs#H&M Fashion Stuff|The Sims 2 H&M Fashion Stuff]]''. |
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IKEA took over the title sponsorship of [[Philadelphia]]'s annual [[6abc IKEA Thanksgiving Day Parade|Thanksgiving Day parade]] in 2008, replacing [[Boscov's]], which filed for bankruptcy in August 2008. |
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In November 2008, a subway train decorated in IKEA style was introduced in [[Novosibirsk]], Russia.<ref>{{cite web|url=http://metkere.com/2008/11/ikea.html|title=IKEA в метро|publisher=metkere.com|language=ru|access-date=28 January 2013|archive-date=19 January 2013|archive-url=https://web.archive.org/web/20130119065112/http://metkere.com/2008/11/ikea.html|url-status=live}}</ref> Four cars were turned into a mobile showroom of the Swedish design. The redesigned train, which features colourful seats and fancy curtains, carried passengers until 6 June 2009. |
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[[File:Ikea subway.png|thumb|left|IKEA marketing campaign in the [[Paris Métro]]]] |
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In March 2010, IKEA developed an event in four important [[Paris Métro|Métro]] stations in Paris, in which furniture collections are displayed in high-traffic spots, giving potential customers a chance to check out the brand's products. The Métro walls were also filled with prints that showcase IKEA interiors. |
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In September 2017, IKEA launched the "IKEA Human Catalogue" campaign, in which memory champion [[Yanjaa|Yanjaa Wintersoul]] memorized all 328 pages of the catalogue in minute detail in just a week before its launch. To prove the legitimacy and accuracy of the campaign, live demonstrations were held at press conferences in IKEA stores across Malaysia, Singapore, Thailand as well as a [[Facebook live|Facebook Live]] event held at the Facebook Singapore headquarters and talk show demonstrations in the US with [[Steve Harvey]] among others.<ref>{{cite web|url=http://ikeahumancatalogue.com/|title=IKEA Human Catalogue|website=ikeahumancatalogue.com|access-date=17 June 2018|archive-date=18 June 2018|archive-url=https://web.archive.org/web/20180618002541/http://ikeahumancatalogue.com/|url-status=live}}</ref> The advertising campaign was hugely successful winning numerous industry awards including the [[Webby Award|Webby award]] 2018 for best social media campaign,<ref>{{Cite news|url=https://www.webbyawards.com/winners/2018/advertising-media-pr/advertising-campaigns/social-media-campaigns/the-ikea-human-catalogue/|title=The IKEA Human Catalogue {{!}} The Webby Awards|access-date=17 June 2018|archive-date=17 June 2018|archive-url=https://web.archive.org/web/20180617215855/https://www.webbyawards.com/winners/2018/advertising-media-pr/advertising-campaigns/social-media-campaigns/the-ikea-human-catalogue/|url-status=live}}</ref> an [[Ogilvy & Mather|Ogilvy]] award and is currently a contender for the [[Cannes Lions International Festival of Creativity|Cannes Lions]] 2018.<ref>{{Cite news|url=http://www.adnews.com.au/news/20-ad-campaigns-tipped-to-win-at-cannes-lions|title=20 ad campaigns tipped to win at Cannes Lions – AdNews|access-date=17 June 2018|archive-date=17 June 2018|archive-url=https://web.archive.org/web/20180617100304/http://www.adnews.com.au/news/20-ad-campaigns-tipped-to-win-at-cannes-lions|url-status=live}}</ref> |
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In 2020, IKEA conducted a "Buy Back Friday" campaign with a message to present a new life to old furniture instead of offering customers to buy new items for Black Friday.<ref>{{cite web|title=IKEA Black Friday 2020|url=https://www.ikea.com/us/en/campaigns/black-friday/|access-date=11 April 2021|website=ikea.com|archive-date=11 April 2021|archive-url=https://web.archive.org/web/20210411144930/https://www.ikea.com/us/en/campaigns/black-friday/|url-status=usurped}}</ref> |
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In June 2021, IKEA said it had suspended adverts on [[GB News]] because of concerns the channel's content would go against their aim to be inclusive. In a statement IKEA said: "We have safeguards in place to prevent our advertising from appearing on platforms that are not in line with our humanistic values. We are in the process of investigating how this may have occurred to ensure it won't happen again in future, and have suspended paid display advertising in the meantime."<ref>{{Cite news|url=https://www.theguardian.com/media/2021/jun/15/brands-pull-ads-from-gb-news-tv-channel-over-content-concerns|title=Brands pull ads from GB News TV channel over content concerns|access-date=16 June 2021|archive-date=15 June 2021|archive-url=https://web.archive.org/web/20210615235639/https://www.theguardian.com/media/2021/jun/15/brands-pull-ads-from-gb-news-tv-channel-over-content-concerns|url-status=live}}</ref> |
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At the end of August 2023, IKEA launched a 6-second advertisement titled “Ads That Skip You” highlighting the benefits of neat organization.<ref>{{Cite web |title=We will be brave and fun in our upcoming campaigns: Ikea India's Anna Ohlin {{!}} Advertising |url=https://www.campaignindia.in/article/we-will-be-brave-and-fun-in-our-upcoming-campaigns-ikea-indias-anna-ohlin/492119 |access-date=2024-11-28 |website=Campaign India}}</ref><ref>{{Cite web |last= |first= |title=IKEA India shows how organizing can save time with 'Ads That Skip You' Series |url=https://www.afaqs.com/news/advertising/ikea-india-shows-how-organizing-can-save-time-with-ads-that-skip-you-series |access-date=2024-11-28 |website=www.afaqs.com |language=en}}</ref> Created by agency Leo Burnett India, the ad illustrates quickly finding items with time to press "skip ad."<ref>{{Cite web |title=IKEA: Bạn không bỏ qua quảng cáo, quảng cáo "bỏ qua" bạn |url=https://www.brandsvietnam.com/congdong/topic/336620-ikea-ban-khong-bo-qua-quang-cao-quang-cao-bo-qua-ban |access-date=2024-11-28 |website=www.brandsvietnam.com |language=vi}}</ref><ref>{{Cite web |title=Bàn làm việc |url=https://noithatduckhang.com/ban-lam-viec |access-date=2024-11-28 |language=vi}}</ref><ref>{{Cite web |date=2023-04-05 |title=Ikea appoints Leo Burnett India as its creative agency: Reports - Exchange4media |url=https://www.exchange4media.com/advertising-news/ikea-appoints-leo-burnett-india-as-its-creative-agency-reports-126493.html |access-date=2024-11-28 |website=Indian Advertising Media & Marketing News – exchange4media |language=en}}</ref> The view-through rate exceeded expectations by over 35%, reaching above 90% in all targeted markets. Additionally, there was an overall increase of 32% in clicks compared to the original target.<ref>{{Cite web |title=Campaign of the Week: Ikea, Ads That Skip You |url=https://www.contagious.com/news-and-views/ikea-uses-self-skipping-ads-to-promote-practical-furnishings |access-date=2024-11-28 |website=Contagious |language=en}}</ref> In September 2024, IKEA added a fresh twist to its marketing strategy by transforming everyday windows into out-of-home advertising spaces.<ref>{{Cite web |title=Ad of the Day: Ikea turns private homes into mini billboards |url=https://www.thedrum.com/news/2024/09/20/ad-the-day-ikea-turns-private-homes-mini-billboards |access-date=2024-11-28 |website=The Drum}}</ref> |
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==In popular culture== |
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In 2018, the company's plush toy shark "[[Blåhaj]]" was widely used in an [[internet meme]],<ref>{{cite web |last=Samson |first=Anna |title=A toy shark from IKEA has blown up on TikTok as creators say it provides them with a unique kind of comfort and community |url=https://www.insider.com/ikea-blahaj-shark-toy-tiktok-viral-videos-2022-3 |url-status=live |archive-url=https://web.archive.org/web/20220810140933/https://www.insider.com/ikea-blahaj-shark-toy-tiktok-viral-videos-2022-3 |archive-date=10 August 2022 |access-date=18 July 2022 |website=Insider}}</ref><ref>{{cite web |last=Yap |first=Mae Yen |date=20 January 2020 |title=Someone created a Twitter account of the IKEA shark going about life and it's adorable |url=https://sea.mashable.com/culture/8683/someone-created-a-twitter-account-of-the-ikea-shark-going-about-life-and-its-adorable |url-status=live |archive-url=https://web.archive.org/web/20211030172418/https://sea.mashable.com/culture/8683/someone-created-a-twitter-account-of-the-ikea-shark-going-about-life-and-its-adorable |archive-date=30 October 2021 |access-date=18 July 2022 |website=Mashable SEA}}</ref><ref>{{cite web |date=26 October 2018 |title=People Around the world are obsessed with this Plush Shark from IKEA |url=https://mymodernmet.com/toy-shark-blaha-ikea/ |url-status=live |archive-url=https://web.archive.org/web/20220719035620/https://mymodernmet.com/toy-shark-blaha-ikea/ |archive-date=19 July 2022 |access-date=19 July 2022 |website=My Modern Met}}</ref> with social media users posting humorous photos of it in their homes.<ref>{{cite web |title=People are rearranging IKEA Shark plushies to make them do human things |url=https://mothership.sg/2019/12/ikea-shark-plushies-human/ |url-status=live |archive-url=https://web.archive.org/web/20220718192454/https://mothership.sg/2019/12/ikea-shark-plushies-human/ |archive-date=18 July 2022 |access-date=18 July 2022 |website=mothership.sg}}</ref> |
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IKEA has been referenced a number of times in novelty music. In 2003, American musician [[Jonathan Coulton]] released the song "IKEA" on the album [[Jonathan Coulton#Discography|''Smoking Monkey'']]. In 2005, British musician [[Mitch Benn]] with the band [[The Distractions]] penned the [[novelty song]] "Ikea".<ref>{{Cite web |title=IKEA, by Mitch Benn & the Distractions |url=https://mitchbenn.bandcamp.com/track/ikea-2 |access-date=2024-09-05 |website=Mitch Benn |language=en}}</ref> In December 2019, [[comedy metal]] band [[Nanowar of Steel]] released the song ''Valhallelujah'' which is dedicated to [[Odin]] and IKEA. The music video features a [[longship]] with the sail adorned with the IKEA logo, and a fictional IKEA catalogue written in [[Old Norse]] [[runes]]. The lyrics include references to various IKEA products, namely BEDDINGE, KIVIK, VITTSJÖ, KNOPPARP, BESTÅ and SLATTUM.<ref>{{Cite AV media |url=https://www.youtube.com/watch?v=S9WWz95ripA |title=NANOWAR OF STEEL - Valhalleluja (ft. Angus McFife from Gloryhammer) {{!}} Napalm Records |date=2019-12-13 |last=Napalm Records |access-date=2024-06-12 |via=YouTube}}</ref> |
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The 1999 American movie [[Fight Club]] references IKEA furniture to show the consumerist culture of modern times. |
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IKEA stores have been featured in many works of fiction. Some examples include: |
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* The 1986 Swedish [[crime comedy film]] ''[[Jönssonligan dyker upp igen]]'' features a failed robbery of the IKEA store at [[Kungens Kurva]] by the eponymous gang.<ref>{{Cite web |last=Björk |first=Stellan |date=2020-04-17 |title=Kamprads djärva satsning gick hem |trans-title=Kamprad's bold bet succeeded |url=https://www.bizstories.se/foretagen/kamprads-djarva-satsning-gick-hem/ |access-date=2024-08-09 |website=BizStories |language=sv}}</ref> |
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* The 2009 American film ''[[500 Days of Summer]]'' features the main characters flirting around the showroom of an IKEA store. It was filmed on-location at an IKEA store. One of the tracks from the film's score is entitled "Ikea" to reflect the scene.<ref>{{cite news |date=19 July 2019 |title=Eight surprising facts about 500 Days of Summer |work=The New Zealand Herald |url=https://www.nzherald.co.nz/entertainment/news/article.cfm?c_id=1501119&objectid=12251047 |url-status=live |access-date=28 April 2020 |archive-url=https://web.archive.org/web/20200801183919/https://www.nzherald.co.nz/entertainment/news/article.cfm?c_id=1501119&objectid=12251047 |archive-date=1 August 2020}}</ref> |
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* ''[[IKEA Heights]]'', a 2009 comedic melodrama web series, was [[Guerrilla filmmaking|filmed without permission]] in an IKEA store.<ref>{{Cite web |last=Neil |first=Dan |date=2009-09-08 |title=Virality erupts at IKEA in Burbank |url=https://www.latimes.com/archives/la-xpm-2009-sep-08-fi-neil8-story.html |access-date=2023-05-31 |website=Los Angeles Times}}</ref> |
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* The 2014 novel ''The Extraordinary Journey of the Fakir Who Got Trapped in an Ikea Wardrobe'' by French author [[Romain Puertolas]] features a trip to an IKEA store in Paris, France.<ref>{{cite news |author=Daniel Hahn |title=The Extraordinary Journey Of The Fakir Who Got Trapped In An Ikea Wardrobe By Romain Puertolas (Trs by Sam Taylor) – book review |newspaper=[[The Independent]] |url=https://www.independent.co.uk/arts-entertainment/books/reviews/the-extraordinary-journey-of-the-fakir-who-got-trapped-in-an-ikea-wardrobe-by-romain-puertolas-trs-by-sam-taylor--book-review-9657117.html |url-status=live |access-date=13 December 2019 |archive-url=https://archive.today/20141217141716/http://www.independent.co.uk/arts-entertainment/books/reviews/the-extraordinary-journey-of-the-fakir-who-got-trapped-in-an-ikea-wardrobe-by-romain-puertolas-trs-by-sam-taylor--book-review-9657117.html |archive-date=17 December 2014}}</ref> |
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* The 2014 horror comedy novel ''[[Horrorstör]]'' is set in a haunted store called ORSK, modelled on IKEA, and the novel is designed to look like the IKEA catalogue.<ref>{{cite magazine |last=Hibberd |first=James |date=5 August 2015 |title=Fox orders pilot about an Ikea-like store selling haunted furniture |url=https://ew.com/article/2015/08/05/horrorstor-fox/ |url-status=live |magazine=[[Entertainment Weekly]] |archive-url=https://web.archive.org/web/20220719093731/https://ew.com/article/2015/08/05/horrorstor-fox/ |archive-date=19 July 2022 |access-date=19 July 2022}}</ref> |
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* The [[SCP Foundation]], an online collaborative writing project documenting fictional anomalies features an entry (numbered SCP-3008) originating in 2017 about an IKEA store which is notably bigger on the inside than its exterior implies, and from which escaping is difficult.<ref name="3008article">{{cite web|last1=Beschizza|first1=Rob|title=Brilliant short story about being trapped in an infinite IKEA|url=https://boingboing.net/2017/06/29/brilliant-short-story-about-be.html|website=[[Boing Boing]]|date=29 June 2017|access-date=5 August 2017|archive-date=4 August 2017|archive-url=https://web.archive.org/web/20170804073701/http://boingboing.net/2017/06/29/brilliant-short-story-about-be.html|url-status=live}}</ref><ref>{{cite web | title=SCP-3008 | url=http://www.scp-wiki.net/scp-3008 | website=SCP Foundation | access-date=13 December 2019 | archive-date=21 December 2019 | archive-url=https://web.archive.org/web/20191221035850/http://www.scp-wiki.net/scp-3008 | url-status=live }}</ref> The interior of this store is populated by entities dressed in IKEA staff attire, resembling highly deformed, faceless humanoids, which are normally passive during the "day" (when the lights are switched on) but become aggressive during the "night" (when the lights are switched off). |
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* A number of [[survival horror]] video games have been created based on SCP-3008.<ref>{{cite web | title=Steam Workshop :: SCP 3008 | url=https://steamcommunity.com/sharedfiles/filedetails/?id=1851742206 | website=Steam Community | access-date=13 December 2019 | archive-date=1 August 2020 | archive-url=https://web.archive.org/web/20200801190705/https://steamcommunity.com/sharedfiles/filedetails/?id=1851742206 | url-status=live }}</ref> |
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* The 2021 children's picture book ''Bears Out of The Box'' features IKEA's Fabler Bjorn doll, who is trying to venture outside the store.<ref>{{cite web |date=23 January 2021 |title=BEARS OUT OF THE BOX – Stefan Cebo – EuropeBooks |url=http://www.europebooks.co.uk/bears-out-of-the-box-stefan-cebo/ |access-date=16 July 2022 |language=it-IT |archive-date=16 July 2022 |archive-url=https://web.archive.org/web/20220716053341/http://www.europebooks.co.uk/bears-out-of-the-box-stefan-cebo/ |url-status=live }}</ref><ref>{{cite book |title=BEARS OUT OF THE BOX Pocket Book – January 22, 2021 |url=https://www.amazon.com/BEARS-OUT-BOX-build-universes/dp/B08MSMJ4DM |access-date=16 July 2022|date=22 January 2021 |publisher=Europa Ediciones |isbn=979-12-201-0410-4 |archive-date=16 July 2022 |archive-url=https://web.archive.org/web/20220716053340/https://www.amazon.com/BEARS-OUT-BOX-build-universes/dp/B08MSMJ4DM |url-status=live }}</ref><ref>{{cite web |title=Bears out of the Box |url=https://www.goodreads.com/work/best_book/77636740-bears-out-of-the-box |access-date=16 July 2022 |website=goodreads.com |archive-date=21 April 2023 |archive-url=https://web.archive.org/web/20230421205341/https://www.goodreads.com/book/show/52371370-bears-out-of-the-box |url-status=live }}</ref> |
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==See also== |
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* [[Criticism of IKEA]] |
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==Notes== |
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{{reflist|group="note"|22em}} |
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==References== |
==References== |
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{{Reflist |
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A scene in the movie "500 Days of Summer" has been shot in an IKEA store. |
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==External links== |
==External links== |
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{{Commons |
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* {{Official website|https://www.ikea.com}} |
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* {{OpenCorp}} |
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* [http://www.ikea.com/ Company home page] |
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{{Finance links | name = IKEA International A/S | google = 5118386 | yahoo = 42/42925 | hoovers = Ikea_AG.70c1c74558e7d2e9 }} |
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* [http://www.guardian.co.uk/g2/story/0,,1240462,00.html "The miracle of Älmhult" by Oliver Burkeman from the Guardian newspaper. The writer talks about his visit to IKEA's HQ in Älmhult] |
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*{{OpenCorp}} |
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Latest revision as of 04:46, 19 December 2024
IKEA | |
Company type | Private |
Industry | Retail |
Founded | 28 July 1943[1] in Sweden |
Founder | Ingvar Kamprad |
Headquarters | Delft, Netherlands (Inter IKEA Systems B.V.) Leiden, Netherlands (INGKA Holding B.V.) |
Number of locations | 479 (2024)[2] |
Area served | Worldwide |
Key people |
|
Products |
|
Revenue | €45.1 billion (2024)[5] |
Website |
|
IKEA (/aɪˈkiːə/ eye-KEE-ə, Swedish: [ɪˈkêːa]), is a multinational conglomerate founded in Sweden[6][7] that designs and sells ready-to-assemble furniture, kitchen appliances, decoration, home accessories, and various other goods and home services. IKEA is owned and operated by a series of not-for-profit and for-profit corporations collectively known and managed as Inter IKEA Group and Ingka Group.[8] The IKEA brand itself is owned and managed by Inter IKEA Systems B.V., a company incorporated in the Netherlands.[9][10]
IKEA was started in 1943 by Ingvar Kamprad, and has been the world's largest furniture retailer since 2008.[11][12][13][14][15] The brand name is an acronym of founder Ingvar Kamprad's initials; Elmtaryd, the family farm where Kamprad was born; and the nearby village of Agunnaryd, Kamprad's hometown in Småland, southern Sweden.[16][17]
The group is primarily known for its modernist furniture designs, simple approach to interior design, and its immersive shopping concept, based around decorated room settings within big-box stores, where customers can interact with products onsite. In addition, the firm is known for its attention to cost control and continuous product development, notably, the ready-to-assemble model of furniture sales, and other elements which have allowed IKEA to establish lower prices than its competitors.
As of September 2024[update], there are 473 IKEA stores operating in 63 countries[18] and in fiscal year 2024, €45.1 billion worth of IKEA goods were sold.[19] For multiple reasons, including lowering taxes payable, IKEA uses a complicated corporate structure in which IKEA stores are operated under franchise from Inter IKEA Systems B.V. which handles branding, design, manufacturing, and supply. Another part of the IKEA group, Ingka Group, operates the majority of IKEA stores as a franchisee and pays royalties to Inter IKEA Systems B.V.[20][21] Some IKEA stores are also operated by independent franchises.[22] The IKEA website contains about 12,000 products and there were over 4.6 billion visitors to IKEA's websites in FY2024.
History
[edit]In 1943, then-17-year-old Ingvar Kamprad founded IKEA as a mail-order sales business, and began to resell furniture five years later.[23] The first store was opened in Älmhult, Småland, in 1958, under the name Möbel-IKÉA (Möbel means "furniture" in Swedish). The name IKEA is an acronym that stands for Ingvar Kamprad Elmtaryd Agunnaryd. The acronym is composed of the initials of the founder's name as well as Elmtaryd, which is the farm on which he grew up, and Agunnaryd, which is the village close to Elmtaryd.[24] The first stores outside Sweden were opened in Norway (1963) and Denmark (1969).[25] The stores spread to other parts of Europe in the 1970s, with the first store outside Scandinavia opening in Switzerland (1973), followed by West Germany (1974),[25] Japan (1974), Australia, Hong Kong (1975), Canada (1976),[26] Singapore and the Netherlands (1978).[27] IKEA further expanded in the 1980s, opening stores in countries such as France and Spain (1981), Belgium (1984),[28] the United States (1985),[29] the United Kingdom (1987),[30] and Italy (1989).[31][27] Germany and the United States, with 55 stores (three in Puerto Rico in latter) each, are the company's biggest markets.
IKEA entered Latin America in February 2010, opening in the Dominican Republic.[32] As for the region's largest markets, on 8 April 2021, a store was opened in Mexico City. In August 2018, IKEA opened its first store in India, in Hyderabad.[33][34] There are now stores in Bengaluru and Mumbai.[35]
In November 2021, IKEA opened its largest store in the world, measuring 65,000 square metres (700,000 sq ft),[36] in the Philippines at the Mall of Asia Complex in Pasay City.[37][38][39]
In March 2022, IKEA announced the closing of all 17 stores in Russia, resulting from the 2022 Russian invasion of Ukraine. Because of the ongoing war and unimproved situation in Russia, IKEA said on 15 June that it would sell factories, close offices and reduce its workforce.[40] Later it became known that IKEA does not plan to sell its business, but expected to return to Russia within two years.[41] By October 2022, IKEA laid off about 10,000 Russian employees.[42]
In September 2023, the MEGA chain of 14 supermarkets, then owned by Ingka, was bought by the Russian Gazprombank.[43]
IKEA was hit hard by COVID-19 because of lockdowns in various countries, like in the UK and Canada.[44][45] Because demand had fallen,[46] its annual catalogue ceased publication after 70 years in print.[47] The prices of their products have risen significantly in 2022 because of rising costs and inflation.[48] In April 2022, IKEA has shut down one of its stores in Guiyang when sales took a significant hit from the pandemic. Because of strict COVID-19 lockdowns in China, IKEA has closed another store in Shanghai by July 2022.[49]
On 10 August 2022, IKEA opened its first store in Chile, the first store in South America. Another store opened in Colombia in September 2023 in Bogotá,[50] soon to be followed by a store in Peru.[51][52][53]
First store opening in each location
[edit]- 1958, Sweden
- 1963, Norway
- 1969, Denmark
- 1973, Switzerland
- 1974, Germany, Japan[note 1]
- 1975, Australia, Hong Kong[note 2]
- 1976, Canada
- 1977, Austria
- 1978, Netherlands, Singapore
- 1980, Spain
- 1981, France, Iceland
- 1983, Saudi Arabia
- 1984, Belgium, Kuwait
- 1985, United States
- 1987, United Kingdom
- 1989, Italy
- 1990, Hungary, Poland
- 1991, Czech Republic,[note 3] Serbia,[note 4] United Arab Emirates
- 1992, Slovakia[note 3]
- 1994, Taiwan
- 1996, Finland, Malaysia
- 1998, China
- 2000, Russia[note 5]
- 2001, Greece, Israel
- 2004, Portugal
- 2005, Turkey
- 2007, Cyprus, Romania
- 2008, Ireland
- 2010, Dominican Republic
- 2011, Bulgaria, Thailand
- 2012, Macau
- 2013, Lithuania, Puerto Rico, Egypt, Qatar
- 2014, Croatia, Indonesia, Jordan, South Korea
- 2016, Morocco
- 2017, Serbia
- 2018, Bahrain, India, Latvia
- 2019, Estonia
- 2020, Ukraine
- 2021, Mexico, Philippines, Slovenia
- 2022, Chile, Oman
- 2023, Colombia
Store layout
[edit]Traditional store layout
[edit]IKEA stores are typically blue buildings with yellow accents[55] — Sweden's national colours. They are often designed in a one-way layout, leading customers counter-clockwise along what IKEA calls "the long natural way" designed to encourage the customer to see the store in its entirety (as opposed to a traditional retail store, which allows a customer to go directly to the section where the desired goods and services are displayed). There are often shortcuts to other parts of the showroom.[56]
The sequence first involves going through the furniture showrooms making note of selected items. The showroom usually consists of simulated room settings where customers can see the actual furniture in use, e.g.: a living-room with a sofa, a TV set, a bookcase and a dining table, accessorized with plants, cushions, rugs, lamps, plates, glasses and cutlery. Showroom sections are usually displayed in the order of the rooms of a house: living rooms, dining rooms, kitchens, bedrooms, kids' rooms. The customer then collects a shopping cart and proceeds to an open-shelf "Market Hall" warehouse for smaller items. Lastly, the self-service furniture warehouse stores the showroom products in flat pack form for the customer to collect the ones previously noted. Sometimes, they are directed to collect products from an external warehouse on the same site or at a site nearby after purchase. Finally, customers pay for their products at a cash register. Not all furniture is stocked at the store level, such as particular sofa colours needing to be shipped from a warehouse to the customer's home or the store.
Most stores follow the layout of having the showroom upstairs with the marketplace and self-service warehouse downstairs. Some stores are single level, while others have separate warehouses to allow more stock to be kept on-site. Single-level stores are found predominantly in areas where the cost of land would be less than the cost of building a 2-level store. Some stores have dual-level warehouses with machine-controlled silos to allow large quantities of stock to be accessed throughout the selling day.
Most IKEA stores offer an "as-is" or "bargain corner" (recently rebranded as "re-shop and re-use") area at the end of the warehouse, just before the cash registers. Returned, damaged, and formerly showcased products are displayed here and sold with a significant discount.
In March 2022, IKEA swiftly exited the Russian market, due to Russia's invasion of Ukraine,[57] leading to a surplus of items that were earmarked for the Russian market in IKEA's warehouses. To get rid of these items quickly, IKEA has been reselling these in a number of non-Russian IKEA stores near the bargain corner at a discount.[58]
Alternative smaller store formats
[edit]The majority of IKEA stores are located outside of city centres, primarily because of land cost and traffic access. Smaller store formats have been unsuccessfully tested in the past (the "midi" concept in the early 1990s, which was tested in Ottawa and Heerlen with 9,300 m2 (100,000 sq ft), or a "boutique" shop in Manhattan).
New formats for full-size stores
[edit]A new format for a full-size, city centre store was introduced with the opening of the Manchester store, situated in Ashton-under-Lyne in 2006. Another store, in Coventry, opened in December 2007. The store had seven floors and a different flow from other IKEA stores; however, it closed down in 2020 due to the site being deemed unsuitable for future business.[59] IKEA's Southampton store that opened in February 2009 is also in the city centre and built in an urban style similar to the Coventry store. IKEA built these stores in response to UK government restrictions on large retail establishment outside city centres.[60]
Adaptation to Japanese market
[edit]Japan was another market where IKEA performed badly, exited the market completely and then re-entered with an alternative store design and layout with which it finally found success. IKEA entered the Japanese market in 1974 through a franchise arrangement with a local partner, only to withdraw in failure in 1986. Japan was one of the first markets outside its original core European market. Despite Japan being the then second largest economy in the world, IKEA did not adapt its store layout strategy to the Japanese consumer. Japanese consumers did not have a culture of DIY furniture assembly, and many in the early days had no way to haul flat-packs home to their small apartments. Nor did the store layouts familiar to European customers initially make sense to Japanese consumers, so prior to re-entering the Japanese market in 2006, IKEA management did extensive local market research in more effective store layouts. One area of local adaptation was the room displays common to every IKEA store worldwide. Rather than just replicate a European room layout, the Japan management was careful to set up room displays more closely resembling Japanese apartment rooms, such as one for "a typical Japanese teenage boy who likes baseball and computer games".[61]
Inner-city stores
[edit]IKEA adapted its store location and services to the 'inner-city' format for expansion in China, unlike other countries where IKEA stores for economic and planning restriction reasons tends to be just outside city centres. In China, planning restrictions are less of an issue due to the lack of cars for much of its customer base. Accordingly, in store design alternatives, IKEA has had to offer store locations and formats closer to public transportation. The store design alternative thinking and strategy in China has been to locate stores to facilitate access for non-car owning customers.[62] In some locations in China, IKEA stores can be found not in the usual suburban or near airport locations like other countries, but rather places such as downtown shopping centres with a 'mini-IKEA' store to attract shoppers. One store design alternative trend IKEA has implemented has been 'pop-up' stores along social media platforms in their advertising strategy, for the first-time as a company, to reach new customers demographics while still reinforcing its global brand locally in China.[63]
Small sized stores
[edit]In Hong Kong, where shop space is limited and costly, IKEA has opened 4 stores, all in multi-storey commercial buildings. They are smaller than other IKEA stores but large by Hong Kong standards. In addition to tailoring store sizes for specific countries, IKEA alters the sizes of products to accommodate cultural differences.[64] In 2015, IKEA announced it would attempt smaller store design at locations in Canada. IKEA claimed this new model would allow them to expand quickly into new markets rather than spending years opening a full-size store.[65]
In 2020, IKEA opened at Al Wahda Mall in Abu Dhabi, United Arab Emirates, which, at 2,137 m2 (23,002 sq ft), was one of the smallest IKEA stores to-date.[66][67][68][69] The company also opened at 360 Mall in Kuwait and in Harajuku, a trendy part of Tokyo, that same year. The size of the Kuwaiti 360 Mall store was slightly larger than Al Wahda's (despite bringing a similar concept), at 3,000 m2 (32,000 sq ft), built as an extension of the mall.[70] As for IKEA Harajuku, the 2,500 m2 (26,910 sq ft), 7-storey store houses the chain's first and only konbini concept.[71][72] In 2021, IKEA opened another one of its smallest stores, located at the JEM Mall in Jurong East, Singapore. Replacing liquidated department store Robinsons, IKEA Jurong is only 6,500 m2 (70,000 sq ft), encompassing three levels; it was the first location in Southeast Asia that did not provide the "Market Hall" warehouse in its store.[73][74] Also during 2021, IKEA opened a small-store-format location on Bali, Indonesia, replacing the liquidated former Giant hypermarket. IKEA Bali is dubbed "Customer Meeting Point", and is the smallest store to open thus far, at 1,200 m2 (13,000 sq ft).[75][76][77][78]
In 2022, another smaller store was opened inside Livat Hammersmith, London, at 4,600 m2 (50,000 sq ft),[79][80][81] followed by a 9,400 m2 (101,000 sq ft) store inside Mall Taman Anggrek, Jakarta, which was opened on 7 April 2022.[82][83][84][85][86][87][88]
Products and services
[edit]Furniture and homeware
[edit]Rather than being sold pre-assembled, much of IKEA's furniture is designed to be assembled by the customer. The company claims that this helps reduce costs and use of packaging by not shipping air; the volume of a bookcase, for example, is considerably less if it is shipped unassembled rather than assembled. This is also more practical for European customers using public transport, because flat packs can be more easily carried.
IKEA contends that it has been a pioneering force in sustainable approaches to mass consumer culture.[89] Kamprad calls this "democratic design", meaning that the company applies an integrated approach to manufacturing and design (see also environmental design). In response to the explosion of human population and material expectations in the 20th and 21st centuries, the company implements economies of scale, capturing material streams and creating manufacturing processes that hold costs and resource use down, such as the extensive use of medium-density fibreboard ("MDF"), also called "particle board".
Notable items of IKEA furniture include the Poäng armchair, the Billy bookcase and the Klippan sofa, all of which have sold by the tens of millions since the late 1970s and early 1980s.[90][91]
The IKEA and LEGO brands teamed up to create a range of simple storage solutions for children and adults.[92]
In June 2021, IKEA Canada unveiled a series of 10 "Love Seats" inspired by different Pride flags, created by four LGBTQ designers.[93]
Furniture and product naming
[edit]IKEA products are identified by one-word (occasionally, two-word) names, predominantly in the Swedish language (or otherwise Scandinavian in origin). With few exceptions, most product names are based on a special naming system developed by the company.[94] The company founder Kamprad was dyslexic, and found that naming the furniture with proper names and words, rather than a long product code, made the products easier to identify and remember.[95] Products are usually named after locations in Scandinavian countries, using names of places in Sweden for sofas and coffee tables, Denmark for textiles, and Norway for beds. Lamps get their names from seas and lakes, while outdoor furniture is named after islands.[96]
A number of IKEA's products bearing Swedish names have (or have had) pronunciations that are humorous to some and offensive to others (but no less "lost-in-translation"), by not only English-speakers but speakers of many different languages. At times, this product-identification has resulted in certain names being changed, or withdrawn completely from certain markets. More often than not, this confusion is simply a result of the Swedish language not being executed correctly, let alone understood, by the reader; nonetheless, this has resulted in potentially "naughty"—or even gravely offensive—connotations, depending on the area in question. Notable examples (for English-speakers) include a since-discontinued (2013) computer desk called jerker (referring to "the jerks" or "jerks"), a foliar plant spray called fukta ("moisten"), a workbench called fartfull ("speedy", "quick"),[97] and a table called lyckhem (pronounced roughly as "look-em"), meaning "bliss" or a "happy home".
Due to several products being named after real places, some locales have ended-up sharing names with objects considered generally unpleasant, such as a toilet brush being named after the lake of Bolmen, or a rubbish bin named after the Norwegian village of Tofte. In November 2021, VisitSweden.com launched a jocular campaign named "Discover the Originals", which invited tourists to visit the physical locations which have received such unfortunate associations with IKEA products.[98][99]
Design services
[edit]In March 2021, IKEA launched IKEA Studio in partnership with Apple Inc., an app enabling customers to design full-scale rooms with IKEA furniture using augmented reality on an iPhone.[101]
Smart home
[edit]In 2016, IKEA started a move into the smart home business. The IKEA TRÅDFRI smart lighting kit was one of the first ranges signalling this change.[102] IKEA has also started a partnership with Philips Hue.[103] The wireless charging furniture, integrating wireless Qi charging into everyday furniture, is another strategy for the smart home business.[104]
A collaboration to build Sonos smart speaker technology into furniture sold by IKEA was announced in December 2017.[105] The first products resulting from the collaboration launched in August 2019.[106]
Under the product name SYMFONISK, IKEA and Sonos have made two distinct wireless speakers that integrate with existing Sonos households or can be used to start with the Sonos-ecosystem, one that's also a lamp and another that's a more traditional looking bookshelf speaker. Both products as well as accessories for the purpose of mounting the bookshelf speakers have gone on sale worldwide on 1 August.[107]
From the start, IKEA SYMFONISK can only be controlled from the Sonos app, but IKEA added support for the speakers in their own Home Smart app to be paired with scenes that control both the lights, air purifiers, smart plugs and smart blinds together with the speakers.[11]
Houses and flats
[edit]IKEA has also expanded its product base to include flat-pack houses and apartments, in an effort to cut prices involved in a first-time buyer's home. The IKEA product, named BoKlok was launched in Sweden in 1996 in a joint venture with Skanska. Now working in the Nordic countries and in the UK, sites confirmed in England include London, Ashton-under-Lyne, Leeds, Gateshead, Warrington, Bristol and Liverpool.[108]
Solar PV systems
[edit]At the end of September 2013, the company announced that solar panel packages, so-called "residential kits", for houses will be sold at 17 UK stores by mid-2014. The decision followed a successful pilot project at the Lakeside IKEA store, whereby one photovoltaic system was sold almost every day. The solar CIGS panels are manufactured by Solibro, a German-based subsidiary of the Chinese company Hanergy.[109][110] By the end of 2014, IKEA began to sell Solibro's solar residential kits in the Netherlands and in Switzerland.[111] In November 2015, IKEA ended its contract with Hanergy and in April 2016 started working with Solarcentury to sell solar panels in the United Kingdom.[112] The deal would allow customers to be able to order panels online and at three stores before being expanded to all United Kingdom stores by the end of summer.[113]
Furniture rental
[edit]In April 2019, the company announced that it would begin test marketing a new concept, renting furniture to customers. One of the motivating factors was that inexpensive IKEA products were viewed as "disposable" and often ended up being scrapped after a few years of use. This was at a time when especially younger buyers said they wanted to minimize their impact on the environment. The company understood this view. In an interview, Jesper Brodin, the chief executive of Ingka Group (the largest franchisee of IKEA stores), commented that "climate change and unsustainable consumption are among the biggest challenges we face in society".[114] The other strategic objectives of the plan were to be more affordable and more convenient. The company said it would test the rental concept in all 30 markets by 2020, expecting it to increase the number of times a piece of furniture would be used before recycling.[115]
Restaurant and food markets
[edit]The first IKEA store opened in 1958 with a small cafe that transitioned into a full-blown restaurant in 1960 that,[116] until 2011, sold branded Swedish prepared specialist foods, such as meatballs, packages of gravy, lingonberry jam, various biscuits and crackers, and salmon and fish roe spread. The new label has a variety of items including chocolates, meatballs, jams, pancakes, salmon and various drinks.[117][118]
Although the cafes primarily serve Swedish food, the menu varies based on the culture, food and location of each store.[119] With restaurants in 38 countries, the menu often incorporates local dishes, including shawarma in Saudi Arabia, poutine in Canada, macarons in France, and gelato in Italy.[120] In Indonesia, the Swedish meatballs recipe is changed to accommodate the country's halal requirements.[121] Stores in Israel sell kosher food under rabbinical supervision.[122] The kosher restaurants are separated into dairy and meat areas.[123]
In many locations, the IKEA restaurants open daily before the rest of the store and serve breakfast.[citation needed][124] All food products are based on Swedish recipes and traditions. Food accounted for 5% of IKEA's sales by 2019.[125]
IKEA sells plant-based meatballs made from potatoes, apples, pea protein, and oats in all of its stores.[126] According to United States journalist Avery Yale Kamila, IKEA began testing its plant-based meatballs in 2014, then launched the plant-based meatballs in 2015 and began testing vegan hot dogs in 2018.[127][128][129] In 2019, journalist James Hansen reported in Eater London that IKEA would only sell vegetarian food at Christmas time.[130]
Småland
[edit]Every store has a children's play area, named Småland (Swedish for small lands; it is also the Swedish province of Småland where founder Kamprad was born). Parents drop off their children at a gate to the playground, and pick them up after they arrive at another entrance. In some stores, parents are given free pagers by the on-site staff, which the staff can use to summon parents whose children need them earlier than expected; in others, staff summon parents through announcements over the in-store public address system or by calling them on their mobile phones.[131] The largest Småland play area is located at the IKEA store in Navi Mumbai, India.[132] Some of these were closed down due to the COVID-19 pandemic.
IKEA Preowned
[edit]In August 2024, Ikea announced it would be trialing an on-line marketplace where customers can connect to buy and sell pre-owned items made by Ikea.
The marketplace, called Ikea Preowned, would run from August until December 2024 and be centred on the cities of Oslo, Norway and Madrid, Spain.[133][134]
Other ventures
[edit]Until 28 September 2023, IKEA owned & operated the MEGA Family Shopping Centre chain in Russia. Its operations have since been sold to Gazprombank.[135]
On 8 August 2008, IKEA UK launched a virtual mobile phone network called IKEA Family Mobile, which ran on T-Mobile.[136] At launch it was the cheapest pay-as-you-go network in the UK.[137][138] In June 2015 the network announced that its services would cease to operate from 31 August 2015.[139]
As of 2012[update], IKEA has a joint venture with TCL to provide Uppleva integrated HDTV and entertainment system products.[140][141]
In mid-August 2012, the company announced that it would establish a chain of 100 economy hotels in Europe but, unlike its few existing hotels in Scandinavia, they would not carry the IKEA name, nor would they use IKEA furniture and furnishings – they would be operated by an unnamed international group of hoteliers.[142] As of 30 April 2018, however, the company owned only a single hotel, the IKEA Hotell in Älmhult, Sweden.
It was previously planning to open another one, in New Haven, Connecticut, United States, after converting the historic Pirelli Building. The company received approval for the concept from the city's planning commission in mid-November 2018; the building was to include 165 rooms and the property would offer 129 dedicated parking spaces. Research in April 2019 provided no indication that the hotel had been completed as of that time.[143][144] The building was then sold to Connecticut architect and developer Becker + Becker for $1.2 million.[145] Opening in 2022 under Hotel Marcel, it is managed by Charlestowne Hotels and became part of Hilton's Tapestry Collection.[146][147]
From 2016 to 2018, IKEA sold a commuter belt-driven bicycle, the Sladda.[148]
In September 2017, IKEA announced they would be acquiring the UD company TaskRabbit. The deal, completed later that year, has TaskRabbit operating as an independent company.[149]
In March 2020, IKEA announced that it had partnered with Pizza Hut Hong Kong on a joint venture. IKEA launched a new side table called SÄVA. The table, designed to resemble a pizza saver, would be boxed in packaging resembling a pizza box, and the building instructions included a suggestion to order a Swedish meatball pizza from Pizza Hut, which would contain the same meatballs served in IKEA restaurants.[150][151]
In April 2020, IKEA acquired AI imaging startup Geomagical Labs.[152][153]
In July 2020, IKEA opened a concept store in the Harajuku district of Tokyo, Japan, where it launched its first ever apparel line.[154]
Ingka Centres, IKEA's malls division, announced in December 2021 that it would open two malls, anchored by IKEA stores, in Gurugram and Noida in India at a cost of around ₹9,000 crore (US$1.1 billion). Both malls are expected to open by 2025.[155]
In 2016, IKEA Canada partnered with the Setsuné Indigenous Fashion Incubator, co-founded by Sage Paul, to design and produce the collection ÅTERSTÄLLA, which means to restore, heal, or redecorate, and it was made entirely from salvaged Ikea textiles, reflecting the traditional Indigenous value to "use everything".[156]
Corporate structure
[edit]IKEA ownership chart
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IKEA is owned and operated by a series of not-for-profit and for-profit corporations. The corporate structure is divided into two main parts: operations and franchising.
INGKA Holding B.V., based in the Netherlands, owns the Ingka Group, which takes care of the centres, retails, customer fulfillment, and all the other services related to IKEA products. The IKEA brand is owned and managed by Inter IKEA Systems B.V., based in the Netherlands, owned by Inter IKEA Holding B.V. Inter IKEA Holding is also in charge of design, manufacturing and supply of IKEA products.
Inter IKEA Systems is owned by Inter IKEA Holding BV, a company registered in the Netherlands, formerly registered in Luxembourg (under the name Inter IKEA Holding SA). Inter IKEA Holding, in turn, is owned by the Interogo Foundation, based in Liechtenstein.[157][158] In 2016, the INGKA Holding sold its design, manufacturing and logistics subsidiaries to Inter IKEA Holding.[159]
In June 2013, Ingvar Kamprad resigned from the board of Inter IKEA Holding SA and his youngest son Mathias Kamprad replaced Per Ludvigsson as the chairman of the holding company. Following his decision to step down, the 87-year-old founder explained, "I see this as a good time for me to leave the board of Inter IKEA Group. By that we are also taking another step in the generation shift that has been ongoing for some years."[160] After the 2016 company restructure, Inter IKEA Holding SA no longer exists, having reincorporated in the Netherlands. Mathias Kamprad became a board member of the Inter IKEA Group and the Interogo Foundation.[161] Mathias and his two older brothers, who also have leadership roles at IKEA, work on the corporation's overall vision and long-term strategy.[160]
Control by Kamprad
[edit]Along with helping IKEA make a non-taxable profit, IKEA's complicated corporate structure allowed Kamprad to maintain tight control over the operations of INGKA Holding, and thus the operation of most IKEA stores. The INGKA Foundation's five-person executive committee was chaired by Kamprad. It appoints a board of INGKA Holding, approves any changes to INGKA Holding's bylaws, and has the right to preempt new share issues. If a member of the executive committee quits or dies, the other four members appoint their replacement.
In Kamprad's absence, the foundation's bylaws include specific provisions requiring it to continue operating the INGKA Holding group and specifying that shares can be sold only to another foundation with the same objectives as the INGKA Foundation.[157]
Financial information
[edit]The net profit of IKEA Group (which does not include Inter IKEA systems) in fiscal year 2009 (after paying franchise fees to Inter IKEA systems) was €2.538 billion on sales of €21.846 billion. Because INGKA Holding is owned by the non-profit INGKA Foundation, none of this profit is taxed. The foundation's nonprofit status also means that the Kamprad family cannot reap these profits directly, but the Kamprads do collect a portion of IKEA sales profits through the franchising relationship between INGKA Holding and Inter IKEA Systems.
As a franchisee, the Ingka Group pays 3% of royalties to Inter IKEA Systems.[21][20] Inter IKEA Systems collected €631 million of franchise fees in 2004 but reported pre-tax profits of only €225 million in 2004. One of the major pre-tax expenses that Inter IKEA systems reported was €590 million of "other operating charges". IKEA has refused to explain these charges, but Inter IKEA Systems appears to make large payments to I.I. Holding, another Luxembourg-registered group that, according to The Economist, "is almost certain to be controlled by the Kamprad family". I.I. Holding made a profit of €328 million in 2004.
In 2004, the Inter IKEA group of companies and I.I. Holding reported combined profits of €553m and paid €19m in taxes, or approximately 3.5 percent.[157]
IKEA has avoided millions of euros in taxes[162] performing some intricate mechanisms[163] and it was noted by the EU back in 2017. The main countries where they operated their business using tax loopholes were the Netherlands, Luxembourg and Belgium.
Public Eye, a non-profit organisation in Switzerland that promotes corporate responsibility, has formally criticised IKEA for its tax avoidance strategies. In 2007, the organisation nominated IKEA for one of its Public Eye "awards", which highlight corporate irresponsibility.[164]
In February 2016, the Greens / EFA group in the European Parliament issued a report entitled IKEA: Flat Pack Tax Avoidance on the tax planning strategies of IKEA and their possible use to avoid tax in several European countries. The report was sent to Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, Taxation and Customs, and Margrethe Vestager, the European Commissioner for Competition, expressing the hope that it would be of use to them in their respective roles "to advance the fight for tax justice in Europe".[21][165]
Manufacturing, logistics, and labour
[edit]Although IKEA originated in Sweden, their household products and furniture products are manufactured in many different countries, in order to achieve cost efficiency. For most of its products, the final assembly is performed by the end-user (consumer).
Swedwood, an IKEA subsidiary, produces all of the company's wood-based products, with the largest Swedwood factory located in Southern Poland. According to the subsidiary, over 16,000 employees across 50 sites in 10 countries manufacture the 100 million pieces of furniture that IKEA sells annually. IKEA furniture uses the hardwood alternative particle board. Hultsfred, a factory in southern Sweden, is the company's sole supplier.
Distribution centre efficiency and flexibility have been one of IKEA's ongoing priorities and thus it has implemented automated, robotic warehouse systems and warehouse management systems (WMS). Such systems facilitate a merger of the traditional retail and mail order sales channels into an omni-channel fulfillment model.[166] In 2020, Ikea was noted by Supply Chain magazine as having one of the most automated warehouse systems in the world.[167]
In the 1980s under the rule of the Romanian dictator Nicolae Ceaușescu, Romania's secret police, the Securitate, received six-figure payments from IKEA.[168][169] According to declassified files at the National College for Studying the Securitate Archives, IKEA agreed to overcharge for products made in Romania and some of the overpayment funds were deposited into an account controlled by the Securitate.[170]
2021 supply chain problems
[edit]Due to the COVID-19 pandemic, IKEA has been facing major supply chain issues since 2021, which could extend into 2022. Jon Abrahamsson, the chief executive of Inter IKEA has stated that the main issue is shipping products from China, as a "quarter" of IKEA products are made there.[171] A variety of reasons led to supply shortages, including consumption shocks. In addition, factories were unable to produce raw materials and workers even after they began receiving orders.[172][173]
Labour practices
[edit]During the 1980s, IKEA kept its costs down by using production facilities in East Germany. A portion of the workforce at those factories consisted of political prisoners. This fact, revealed in a report by Ernst & Young commissioned by the company, resulted from the intermingling of criminals and political dissidents in the state-owned production facilities IKEA contracted with, a practice which was generally known in West Germany. IKEA was one of a number of companies, including West German firms, which benefited from this practice. The investigation resulted from attempts by former political prisoners to obtain compensation. In November 2012, IKEA admitted being aware at the time of the possibility of use of forced labour and failing to exercise sufficient control to identify and avoid it. A summary of the Ernst & Young report was released on 16 November 2012.[174]
In 2018, Ikea was accused of union busting when employees sought to organize, using such tactics as captive audience meetings.[175][176]
IKEA was named one of the 100 Best Companies for Working Mothers in 2004 and 2005 by Working Mothers magazine.[177] It ranked 80 in Fortune's 200 Best Companies to Work For in 2006 and in October 2008, IKEA Canada LP was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc.[178]
Environmental initiatives
[edit]Umbrella initiatives
[edit]After initial environmental issues like the highly publicized formaldehyde scandals in the early 1980s and 1992,[179][180][181] IKEA took a proactive stance on environmental issues and tried to prevent future incidents through a variety of measures.[182] In 1990, IKEA invited Karl-Henrik Robèrt, founder of the Natural Step, to address its board of directors. Robert's system conditions for sustainability provided a strategic approach to improving the company's environmental performance. In 1990, IKEA adopted the Natural Step framework as the basis for its environmental plan.[183] This led to the development of an Environmental Action Plan, which was adopted in 1992. The plan focused on structural change, allowing IKEA to "maximize the impact of resources invested and reduce the energy necessary to address isolated issues".[183] The environmental measures taken include the following:
- Replacing polyvinylchloride (PVC) in wallpapers, home textiles, shower curtains, lampshades and furniture—PVC has been eliminated from packaging and is being phased out in electric cables;
- Minimizing the use of formaldehyde in its products, including textiles;
- Eliminating acid-curing lacquers;
- Producing a model of chair (OGLA) made from 100% post-consumer plastic waste;
- Introducing a series of air-inflatable furniture products into the product line. Such products reduce the use of raw materials for framing and stuffing and reduce transportation weight and volume to about 15% of that of conventional furniture;
- Reducing the use of chromium for metal surface treatment;
- Limiting the use of substances such as cadmium, lead, PCB, PCP, and Azo pigments;
- Using wood from responsibly managed forests that replant and maintain biological diversity;
- Using only recyclable materials for flat packaging and "pure" (non-mixed) materials for packaging to assist in recycling.[183]
- Introducing rental bicycles with trailers for customers in Denmark.[184]
In 2000, IKEA [185] introduced its code of conduct for suppliers that covers social, safety, and environmental questions. Today IKEA has around 60 auditors who perform hundreds of supplier audits every year. The main purpose of these audits is to make sure that the IKEA suppliers follow the law in each country where they are based. Most IKEA suppliers fulfil the law today with exceptions for some special issues, one being excessive working hours in Asia, in countries such as China and India.[citation needed]
As of March 2018[update], IKEA has signed on with 25 other companies to participate in the British Retail Consortium's Better Retail Better World initiative, which challenges companies to meet objectives outlined by the United Nations Sustainable Development Goals.[186]
Product life cycle
[edit]To make IKEA a more sustainable company, a product life cycle was created. For the idea stage, products should be flat-packed so that more items can be shipped at once; products should also be easier to dismantle and recycle. Raw materials are used, and since wood and cotton are two of IKEA's most important manufacturing products, the company works with environmentally friendly forests and cotton, whereby the excessive use of chemicals and water is avoided.[187]
IKEA stores recycle waste and many run on renewable energy. All employees are trained in environmental and social responsibility, while public transit is one of the priorities when the location of stores is considered. Also, the coffee and chocolate served at IKEA stores is UTZ Certified.[188]
The last stage of the life cycle is the end of life. Most IKEA stores recycle light bulbs and drained batteries, and the company is also exploring the recycling of sofas and other home furnishing products.
Energy sources
[edit]In August 2008, IKEA announced that it had created IKEA GreenTech, a €50 million venture capital fund. Located in Lund (a university town in Sweden), it will invest in 8–10 companies in the coming five years with focus on solar panels, alternative light sources, product materials, energy efficiency and water saving and purification. The aim is to commercialise green technologies for sale in IKEA stores within 3–4 years.[189][190]
On 17 February 2011, IKEA announced its plans to develop a wind farm in Dalarna County, Sweden, furthering its goal of using only renewable energy to fuel its operations.[191] As of June 2012[update],[needs update] 17 United States IKEA stores are powered by solar panels, with 22 additional installations in progress,[192] and IKEA owns the 165 MW Cameron Wind farm in Cameron County on the South Texas coast[193] and a 42 MW coastal wind farm in Finland.[194]
In September 2019, IKEA announced that they would be investing $2.8 billion in renewable energy infrastructure. The company is targeting making their entire supply chain climate positive by 2030.[195]
Sourcing of wood
[edit]The group is responsible for approximately 1% of world commercial-product wood consumption, making it the largest individual user of wood in the world.[196][197] IKEA claims to use 99.5% recycled or FSC-certified wood.[198] However, IKEA has been shown to be involved in unsustainable and most likely illegal logging of old-growth and protected forests in multiple Eastern European countries in recent years.[196][199][200]
IKEA is the world's largest buyer and retailer of wood.[196] In 2015, IKEA claimed to use 1% of the world's supply of timber.[201]
According to IKEA's 2021 Sustainability Report, 99.5% of all wood that the company uses is either recycled or meets the standards of the Forest Stewardship Council. IKEA states that "[a]ll wood used for IKEA products must meet our critical requirements that ensure it's not (e.g.) sourced from illegally harvested forests [...]".[198] However, despite these claims, IKEA has been involved in unsustainable and most likely illegal logging of wood in multiple Eastern European countries in recent years; see Criticism of IKEA.
IKEA owns about 136,000 acres of forest in the US and about 450,000 acres in Europe.[202][203]
On 14 January 2021, IKEA announced that Ingka Investments had acquired approximately 10,840 acres (4,386 hectares) near the Altamaha River Basin in the U.S. state of Georgia from The Conservation Fund. The acquisition comes with the agreement "to protect the land from fragmentation, restore the longleaf pine forest, and safe-guard the habitat of the gopher tortoise".[204][205]
IKEA is reported to be the largest private landowner in Romania since 2015.[196]
Use of wood
[edit]In 2011, the company examined its wood consumption and noticed that almost half of its global pine and spruce consumption was for the fabrication of pallets. The company consequently started a transition to the use of paper pallets and the "Optiledge system".[206] The OptiLedge product is totally recyclable, made from 100% virgin high-impact copolymer polypropylene (PP) plastic. The system is a "unit load alternative to the use of a pallet. The system consists of the OptiLedge (usually used in pairs), aligned and strapped to the bottom carton to form a base layer upon which to stack more products. Corner boards are used when strapping to minimize the potential for package compression." The conversion began in Germany and Japan, before its introduction into the rest of Europe and North America.[207] The system has been marketed to other companies, and IKEA has formed the OptiLedge company to manage and sell the product.[208]
Packaging and bags
[edit]Since March 2013, IKEA has stopped providing plastic bags to customers, but offers reusable bags for sale.[209] The IKEA restaurants also only offer reusable plates, knives, forks, spoons, etc. Toilets in some IKEA WC-rooms have been outfitted with dual-function flushers. IKEA has recycling bins for compact fluorescent lamps (CFLs), energy-saving bulbs, and batteries.
In 2001, IKEA was one of the first companies to operate its own cross-border goods trains through several countries in Europe.[210]
Electric vehicles
[edit]IKEA has expanded its sustainability plan in the UK to include electric car charge points for customers at all locations by the end of 2013.[211][needs update] The effort will include Nissan and Ecotricity and promise to deliver an 80% charge in 30 minutes.[212]
From 2016, IKEA has only sold energy-efficient LED lightbulbs, lamps and light fixtures. LED lightbulbs use as little as 15% of the power of a regular incandescent light bulb.[213]
Donations made by IKEA
[edit]The INGKA Foundation is officially dedicated to promoting "innovations in architecture and interior design".[157] The net worth of the foundation exceeded the net worth of the much better known Bill & Melinda Gates Foundation (now the largest private foundation in the world) for a period.[214] However, most of the Group's profit is spent on investment.
IKEA is involved in several international charitable causes, particularly in partnership with UNICEF, including:
- In the wake of the 2004 Indian Ocean earthquake and tsunami, IKEA Australia agreed to match dollar for dollar co-workers' donations and donated all sales of the IKEA Blue Bag to the cause.
- After the 2005 Kashmir earthquake, IKEA gave 500,000 blankets to the relief effort in the region.[215]
- IKEA has provided furniture for over 100 "bridge schools" in Liberia.[216]
- Following the 2008 Sichuan earthquake in China, IKEA Beijing sold an alligator toy for 40 yuan (US$5.83, €3.70) with all income going to the children in the earthquake struck area.
- In 2013, IKEA donated more than $2.6 million to UNICEF to help children and families affected by Typhoon Haiyan in the Philippines.
IKEA also supports American Forests to restore forests and reduce pollution.[217][218]
On 3 March 2022, IKEA announced €20 million donation to UNHCR for relief support of Ukrainians who suffer from the 2022 Russian invasion of Ukraine.[219][220]
IKEA donated €10 million to Doctors Without Borders for its work in Syria in response to the 2023 Turkey–Syria earthquake.[221]
IKEA Social Initiative
[edit]In September 2005, IKEA Social Initiative was formed to manage the company's social involvement on a global level. IKEA Social Initiative is headed by Marianne Barner.[222]
The main partners of IKEA Social Initiative are UNICEF[223] and Save the Children.[224]
On 23 February 2009, at the ECOSOC event in New York, UNICEF announced that IKEA Social Initiative has become the agency's largest corporate partner, with total commitments of more than US$180 million (£281,079,000).[225][226]
Examples of involvements:
- The IKEA Social Initiative contributes €1 (£1.73) to UNICEF and Save the Children from each soft toy sold during the holiday seasons, raising a total of €16.7 million (£28.91 million) so far.[227] In 2013, an IKEA soft toy, Lufsig, created a storm and sold out in Hong Kong and in Southern China because it had been misnamed in Chinese.[228]
- The IKEA Social Initiative provided soft toys to children in Burma after Cyclone Nargis.[229]
- Starting in June 2009, for every Sunnan solar-powered lamp sold in IKEA stores worldwide, IKEA Social Initiative will donate one Sunnan with the help of UNICEF.[230]
- In September 2011,[231] the IKEA Foundation pledged to donate $62 million to help Somali refugees in Kenya.[23]
- According to The Economist, however, IKEA's charitable giving is meager, "barely a rounding error in the foundation's assets".[23]
In 2009, Sweden's largest television station, SVT, revealed that IKEA's money—the three per cent collection from each store—does not actually go to a charitable foundation in the Netherlands, as IKEA has said. Inter IKEA is owned by a foundation in Liechtenstein, called Interogo, which has amassed $12 billion (£18 billion), and is controlled by the Kamprad family.[23]
Marketing
[edit]Catalogue
[edit]IKEA used to publish an annual catalogue, first published in Swedish in 1951.[232] It is considered to be the main marketing tool of the company, consuming 70% of its annual marketing budget.[233] The catalogue is distributed both in stores and by mail,[234] with most of it being produced by IKEA Communications AB in IKEA's hometown of Älmhult, Sweden.[235] At its peak in 2016, 200 million copies of the catalogue were distributed in 32 languages to more than 50 markets.[236] In December 2020, IKEA announced that they would cease publication of both the print and digital versions of the catalogue, with the 2021 edition (released in 2020) being the final edition.[237]
IKEA Family
[edit]In common with some other retailers, IKEA launched a loyalty card called "IKEA Family". The card is free of charge and can be used to obtain discounts on certain products found in-store. It is available worldwide. In conjunction with the card, IKEA also publishes and sells a printed quarterly magazine titled IKEA Family Live which supplements the card and catalogue. The magazine is already printed in thirteen languages and an English edition for the United Kingdom was launched in February 2007. It is expected to have a subscription of over 500,000.[238]
IKEA Place app
[edit]On 12 September 2017, IKEA announced the augmented reality app, IKEA Place, following by Apple's release of its ARkit technology and iOS 11.[239] IKEA Place helps consumers to visualize true to scale IKEA products into real environment.[240]
Advertising
[edit]In 1994, IKEA ran a commercial in the United States, titled Dining Room, widely thought to be the first to feature a homosexual couple; it aired for several weeks before being withdrawn after calls for a boycott and a bomb threat directed at IKEA stores.[241] Other IKEA commercials appeal to the wider LGBTQ community, one featuring a transgender woman.[242]
In 2002, the inaugural television component of the "Unböring" campaign, titled Lamp, went on to win several awards, including a Grand Clio,[243] Golds at the London International Awards[244] and the ANDY Awards,[245] and the Grand Prix at the Cannes Lions International Advertising Festival,[246] the most prestigious awards ceremony in the advertising community.
A debate ensued between Fraser Patterson, Chief Executive of Onis, and Andrew McGuinness, partner at Beattie McGuinness Bungay (BMB), the advertising and PR agency that was awarded the £12 million IKEA account.[247][248] The essence of the debate was that BMB claimed to be unaware of Onis's campaign as Onis was not an advertising agency. Onis's argument was that its advertising could be seen in prominent landmarks throughout London, having been already accredited, showing concern about the impact IKEA's campaign would have on the originality of its own. BMB and IKEA subsequently agreed to provide Onis with a feature page on the IKEA campaign site linking through to Onis's website for a period of one year.
In 2008, IKEA paired up with the makers of video game The Sims 2 to make a stuff pack called IKEA Home Stuff, featuring many IKEA products. It was released on 24 June 2008 in North America and 26 June 2008 in Europe. It is the second stuff pack with a major brand, the first being The Sims 2 H&M Fashion Stuff.
IKEA took over the title sponsorship of Philadelphia's annual Thanksgiving Day parade in 2008, replacing Boscov's, which filed for bankruptcy in August 2008.
In November 2008, a subway train decorated in IKEA style was introduced in Novosibirsk, Russia.[249] Four cars were turned into a mobile showroom of the Swedish design. The redesigned train, which features colourful seats and fancy curtains, carried passengers until 6 June 2009.
In March 2010, IKEA developed an event in four important Métro stations in Paris, in which furniture collections are displayed in high-traffic spots, giving potential customers a chance to check out the brand's products. The Métro walls were also filled with prints that showcase IKEA interiors.
In September 2017, IKEA launched the "IKEA Human Catalogue" campaign, in which memory champion Yanjaa Wintersoul memorized all 328 pages of the catalogue in minute detail in just a week before its launch. To prove the legitimacy and accuracy of the campaign, live demonstrations were held at press conferences in IKEA stores across Malaysia, Singapore, Thailand as well as a Facebook Live event held at the Facebook Singapore headquarters and talk show demonstrations in the US with Steve Harvey among others.[250] The advertising campaign was hugely successful winning numerous industry awards including the Webby award 2018 for best social media campaign,[251] an Ogilvy award and is currently a contender for the Cannes Lions 2018.[252]
In 2020, IKEA conducted a "Buy Back Friday" campaign with a message to present a new life to old furniture instead of offering customers to buy new items for Black Friday.[253]
In June 2021, IKEA said it had suspended adverts on GB News because of concerns the channel's content would go against their aim to be inclusive. In a statement IKEA said: "We have safeguards in place to prevent our advertising from appearing on platforms that are not in line with our humanistic values. We are in the process of investigating how this may have occurred to ensure it won't happen again in future, and have suspended paid display advertising in the meantime."[254]
At the end of August 2023, IKEA launched a 6-second advertisement titled “Ads That Skip You” highlighting the benefits of neat organization.[255][256] Created by agency Leo Burnett India, the ad illustrates quickly finding items with time to press "skip ad."[257][258][259] The view-through rate exceeded expectations by over 35%, reaching above 90% in all targeted markets. Additionally, there was an overall increase of 32% in clicks compared to the original target.[260] In September 2024, IKEA added a fresh twist to its marketing strategy by transforming everyday windows into out-of-home advertising spaces.[261]
In popular culture
[edit]In 2018, the company's plush toy shark "Blåhaj" was widely used in an internet meme,[262][263][264] with social media users posting humorous photos of it in their homes.[265]
IKEA has been referenced a number of times in novelty music. In 2003, American musician Jonathan Coulton released the song "IKEA" on the album Smoking Monkey. In 2005, British musician Mitch Benn with the band The Distractions penned the novelty song "Ikea".[266] In December 2019, comedy metal band Nanowar of Steel released the song Valhallelujah which is dedicated to Odin and IKEA. The music video features a longship with the sail adorned with the IKEA logo, and a fictional IKEA catalogue written in Old Norse runes. The lyrics include references to various IKEA products, namely BEDDINGE, KIVIK, VITTSJÖ, KNOPPARP, BESTÅ and SLATTUM.[267]
The 1999 American movie Fight Club references IKEA furniture to show the consumerist culture of modern times.
IKEA stores have been featured in many works of fiction. Some examples include:
- The 1986 Swedish crime comedy film Jönssonligan dyker upp igen features a failed robbery of the IKEA store at Kungens Kurva by the eponymous gang.[268]
- The 2009 American film 500 Days of Summer features the main characters flirting around the showroom of an IKEA store. It was filmed on-location at an IKEA store. One of the tracks from the film's score is entitled "Ikea" to reflect the scene.[269]
- IKEA Heights, a 2009 comedic melodrama web series, was filmed without permission in an IKEA store.[270]
- The 2014 novel The Extraordinary Journey of the Fakir Who Got Trapped in an Ikea Wardrobe by French author Romain Puertolas features a trip to an IKEA store in Paris, France.[271]
- The 2014 horror comedy novel Horrorstör is set in a haunted store called ORSK, modelled on IKEA, and the novel is designed to look like the IKEA catalogue.[272]
- The SCP Foundation, an online collaborative writing project documenting fictional anomalies features an entry (numbered SCP-3008) originating in 2017 about an IKEA store which is notably bigger on the inside than its exterior implies, and from which escaping is difficult.[273][274] The interior of this store is populated by entities dressed in IKEA staff attire, resembling highly deformed, faceless humanoids, which are normally passive during the "day" (when the lights are switched on) but become aggressive during the "night" (when the lights are switched off).
- A number of survival horror video games have been created based on SCP-3008.[275]
- The 2021 children's picture book Bears Out of The Box features IKEA's Fabler Bjorn doll, who is trying to venture outside the store.[276][277][278]
See also
[edit]Notes
[edit]- ^ Ceased operations in 1986, re-opened in 2006
- ^ Then British Hong Kong
- ^ a b Then part of Czechoslovakia
- ^ Then part of Yugoslavia
- ^ Ceased operations in 2022[54]
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{{cite web}}
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External links
[edit]- Official website
- IKEA companies grouped at OpenCorporates
- Business data for IKEA International A/S:
- IKEA
- Companies based in South Holland
- Design companies established in 1943
- Design companies of Sweden
- Food and drink companies established in 1943
- Food and drink companies of Sweden
- Food and drink companies of the Netherlands
- Furniture retailers
- Furniture retailers of the United States
- Home appliance brands
- Jardines (company)
- Lighting brands
- Manufacturing companies established in 1943
- Mattress retailers of Sweden
- Multinational companies headquartered in the Netherlands
- Privately held companies of Sweden
- Purveyors to the Court of Sweden
- Retail companies established in 1943
- Retail companies of Sweden
- Retail companies of the Netherlands
- Superstores
- Supermarkets of the United States
- Superstores in the United States
- Swedish brands
- Swedish companies established in 1943