An In-Depth Look at the Heart of the World‘s Largest Furniture Retailer
As any fan of affordable, stylish Scandinavian design knows, IKEA is a true retail giant with an impressive global reach. The company operates 422 stores across 50 countries, employs over 200,000 workers, and pulls in annual revenues north of €40 billion. But where are the big ideas hatched that have made IKEA so successful? Where do the designers dream up the next must-have bedroom set or genius kitchen gadget? And where do the executives crunch the numbers to keep this behemoth running smoothly?
In this deep dive, we‘ll take you behind the scenes at IKEA‘s global headquarters in Delft, Netherlands. As an expert in the retail industry with a discerning eye, I‘ll share my insights on what makes IKEA‘s headquarters unique and how it reflects the company‘s values and vision. We‘ll also explore IKEA‘s leadership, ownership structure, and some of its key satellite offices around the world.
The Heart of IKEA: Delft, Netherlands
Since 2001, the quiet Dutch city of Delft has been the global heart of IKEA‘s operations. But why the Netherlands? Prior to 2001, IKEA had been headquartered in Denmark since 1973, after moving from its original home base in Älmhult, Sweden.
The decision to uproot to the Netherlands came down to two key factors. First, Dutch corporate law provided a more favorable framework for maintaining IKEA‘s unique ownership structure and protecting the company from unwanted takeover attempts. Second, the Netherlands offered certain tax advantages for multinational companies like IKEA.
So in 2001, IKEA packed up its flat-pack boxes and made the move to its current home in Delft. Here are the specifics of where you can find IKEA‘s main mothership:
IKEA Group Headquarters
Olof Palmestraat 1
2616 LN Delft
The Netherlands
Phone: +31-71-5659110
A Campus Designed for New Ideas
The IKEA headquarters campus in Delft is a sprawling complex that houses the company‘s core global functions as well as the IKEA of Sweden subsidiary responsible for product development. In total, around 1,500 designers, product developers, and other head office staff work at the Delft facilities.
The campus consists of a series of striking modern buildings connected by green spaces and pathways that encourage walking or biking around the grounds. At the center is the Hubhult, a massive communal space used for large meetings, presentations, and events.
In line with IKEA‘s focus on sustainability, the Delft campus incorporates an array of impressive green features and renewable energy sources. Several of the buildings have earned LEED certifications for sustainable design. The rooftops are covered with solar panels and green roof gardens that reduce energy usage and stormwater runoff.
IKEA is striving to make the Delft facilities completely energy neutral, and they are already well on their way. In 2019, the campus generated around 50% of its energy needs from solar power alone. Large-scale renewable energy contracts provide the rest of the campus‘ power requirements.
Other notable eco-friendly features include bee and butterfly gardens to support local biodiversity, abundant natural lighting and ventilation to reduce energy usage, rainwater collection systems, and even an on-site recycling center for the company‘s product prototypes and waste.
Designed for Collaboration and Creativity
Inside the headquarters buildings, IKEA‘s signature aesthetic is on full display with bright, open spaces accented by bold colors and natural materials. The design of the workspaces is carefully considered to reflect IKEA‘s key values of togetherness, creativity, cost-consciousness, and simplicity.
The large floorplans use a flexible, open layout that mixes different types of working areas to support both collaboration and focused individual work. Sleek, modular desks can be reconfigured as needed, and glass-walled meeting rooms provide more private spaces without sacrificing transparency. And of course, the offices are filled with IKEA furniture for staff to test out and enjoy.
Employees can take a break in the bright, plant-filled lounges and cafes sprinkled throughout the buildings. The cafe menus focus on healthy, seasonal ingredients in line with Swedish food traditions. Fika, the Swedish ritual of a coffee and snack break, is an integral part of the workday at IKEA HQ.
These thoughtfully designed spaces are meant to foster the creativity and teamwork needed to bring forth the innovative products and solutions that have made IKEA a global success.
By the Numbers: IKEA‘s Retail Empire
To put IKEA‘s global presence and headquarters operations in perspective, here are some key statistics:
- Total IKEA stores worldwide (2020): 445
- Countries with IKEA retail operations: 60
- Total IKEA employees worldwide: 217,000
- Total IKEA revenue (2019): €41.3 billion
- Employees at IKEA Delft headquarters: ~1,500
- IKEA headquarters solar power generation (2019): 50% of electricity needs
- Volume of IKEA catalog printed each year: 200 million copies in 69 different versions and 32 languages
Leadership and Ownership: Who‘s Running the Show?
So now that we know where the big IKEA decisions are made, let‘s look at who is making them. IKEA‘s founder Ingvar Kamprad started the company in 1943 as a mail-order business selling items like pens and picture frames. Over the next several decades he built IKEA into an international powerhouse while maintaining its unique identity as a values-driven brand.
While Kamprad remained involved as a senior advisor until his death in 2018 at age 91, IKEA is now helmed by CEO Jesper Brodin. Brodin took the reins in 2017 after over 20 years with the company in various roles including heading up the IKEA of Sweden product development subsidiary.
Some other key figures on IKEA‘s executive team include:
- Martin van Dam, CFO and Deputy CEO
- Fredrika Inger, Chief Sustainability Officer
- Lena Herder, Chief Legal Officer
- Barbara Martin Coppola, Chief Digital Officer
Perhaps the most unique aspect of IKEA, however, is its intricate ownership structure. Let‘s try to break it down simply:
The IKEA Group, which operates the majority of IKEA retail stores worldwide, is owned by INGKA Holding based in the Netherlands. INGKA Holding, in turn, belongs to the Stichting INGKA Foundation, a Dutch trust established by Kamprad to maintain IKEA‘s independence and secure its long-term success.
However, the IKEA brand, concept and trademark belong to a separate entity – Inter IKEA Systems, also based in the Netherlands. Inter IKEA earns franchise fees of 3% on all retail sales from IKEA stores globally. This company is owned by Inter IKEA Holding registered in Luxembourg, which is controlled by the Interogo Foundation in Liechtenstein. The Interogo Foundation oversees the charitable contributions and investments of the Kamprad family.
If that sounds deliberately complex and hard to follow, it is. This structure, though, provides IKEA with important benefits in terms of protecting the company from outside control, minimizing taxes, and funding the philanthropic visions of the Kamprad family.
IKEA Hubs Around the Globe
Beyond the Delft headquarters, IKEA maintains important corporate outposts in key markets around the world. These hubs allow IKEA to stay attuned to the unique needs and preferences of consumers in different regions. Here‘s a look at a few of them.
IKEA of Sweden – Älmhult, Sweden
While the head office has moved on, IKEA still maintains a major presence in Älmhult, the small southern Swedish town where the company was founded. The IKEA of Sweden subsidiary based there focuses on product development, testing, and supply chain management. Designers and engineers at this location come up with the initial ideas and prototypes for new products.
Some key milestones from the Älmhult facilities:
- 1953: First IKEA showroom opened here
- 1958: First IKEA store opened
- 1965: IKEA begins designing its own furniture in Älmhult
- 2016: IKEA Museum opens on the site of the original store
IKEA US Headquarters – Conshohocken, Pennsylvania
To oversee its critical North American market, IKEA has a head office located just outside Philadelphia in Conshohocken, Pennsylvania. The US corporate headquarters campus houses IKEA Retail US, which manages the 50 US stores and e-commerce.
Interesting facts about IKEA USA:
- IKEA‘s first US store opened in 1985 near Philadelphia
- The US is IKEA‘s 2nd biggest market after Germany
- There are nearly 20,000 IKEA employees in the US
- 30 million Americans receive an IKEA catalog each year
IKEA China – Shanghai
With a large and growing retail footprint in China, IKEA has established a full-service headquarters in Shanghai to manage this key market. The campus includes a product development center focused on creating products suited to Chinese consumers and homes. The site, opened in 2016, features Scandinavian minimalist architecture and a massive 1000-person restaurant.
IKEA in China, by the numbers:
- 30 IKEA stores in China as of 2020
- 14,000 employees
- €1.7 billion in China sales in FY2019
- 3 IKEA distribution centers in China
Bringing It All Together
From its idyllic headquarters campus in Delft, IKEA‘s leadership team sets the strategic vision for this retail giant while overseeing day-to-day global operations. By maintaining key hubs in other critical markets, the company can remain flexible and localize its offerings while still presenting a cohesive brand worldwide.
And of course, all the decisions made at headquarters are ultimately in service of the company‘s mission: to create a better everyday life for people by offering well-designed, functional, and affordable home furnishings. Having had the opportunity to peek behind the curtain at IKEA HQ, it‘s clear that this is a company that takes its values and commitments seriously. From the minute attention to product engineering and quality to the focus on sustainable operations, IKEA is playing the long game as a brand consumers know and trust.
The next time you stroll through an IKEA store, take a moment to think about all the creativity, strategy, and old-fashioned hard work happening behind the scenes at the company‘s headquarters to bring you the products and shopping experience you expect. And if you ever find yourself in Delft, keep an eye out for all the bright minds in blue and yellow who are busy dreaming up the next big IKEA hit.
