New IKEA CEO prefers slow(er) expansion

Supporting existing stores first

Agnefjäll, who took over
early September, prefers to invest in the current 300 stores, hoping to
increase IKEA’s turnover ten percent per year. That should enable the
furniture chain to double its turnover to some 50 billion euro (65
billion dollars) by 2020, as explained in an interview with business
publication, The Financial Times.

These plans fit the wishes of
IKEA’s 87-year-old founder, Ingvar Kamprad, who felt the need to
publicly react against Ohlsson’s expansionistic views.

“I have
been present at all but one board of directors. We had a complete
agreement on the 10 percent growth per year and the recommendation that
half of that growth should come from the current stores and half from
new stores. Opening 20 to 25 stores a year is not something we agreed
upon. I believe the amount of new stores will be lower than what
management announced, maybe ten to twelve”, stated Kamprad.

Fear of history repeating itself

Kamprad
and Agnefjäll wish to avoid a repetition of what happened in the
seventies and eighties. A overzealous expansion in Japan and the United
States created problems, which  led to a slower rate of new stores in
India and China.

Agnefjäll believes a slower rate of new stores better fits the culture and vision of IKEA.