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IKEA is a privately held, Swedish company that designs and sells ready-to-assemble furniture (such as beds, chairs, and desks), appliances, and home accessories. The company is the world’s largest furniture retailer. Founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, who later became one of the richest people in the world, the company’s name is an acronym comprising the initials ofIngvar Kamprad (the founder’s name), Elmtaryd (the farm where he grew up) and Agunnaryd (his hometown in Småland, South Sweden). The company is known for its modern architectural designs on various types of appliances and furniture, often associated with a simplified eco-friendlyinterior design.
In addition, 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 average of two to three percent over the decade to 2010, while continuing its global expansion.
As of October 2011, IKEA has 332 stores in 38 countries. In fiscal year 2010, it sold $23.1 billion worth of goods, a 7.7 percent increase over 2009.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. In mid-August 2012, the company announced that it will be establishing a chain of 100 economy hotels in Europe but, unlike its few existing hotels in Scandinavia, they will not carry the Ikea name nor will they use Ikea furniture and furnishings – they will be operated by an unnamed international group of hoteliers.
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. IKEA is the world’s third-largest consumer of wood, behind The Home Depot and Lowe’s.
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