History of Ikea

IKEA was founded in 1943 by Ingvar Kamprad in Älmhult, Sweden, initially as a small mail-order business selling household items. The name is an acronym formed from Kamprad’s initials and the names of his family farm and village: Ingvar Kamprad Elmtaryd Agunnaryd. The company began offering furniture in the early 1950s, introducing flat-pack, self-assembly designs that reduced shipping costs and allowed customers to transport products without specialist delivery.

By the 1960s, IKEA had opened stores in Sweden and expanded to Norway and Denmark. International growth accelerated through the 1970s and 1980s, with stores opening in Germany, Australia, and North America. The company’s model — large out-of-town warehouse stores with in-store restaurants, flat-pack products, and low prices — distinguished it from traditional furniture retailers and attracted a broad customer base.

IKEA entered Israel in 2001, opening its first store in Rishon LeZion. The franchise has since expanded to additional locations. BDS campaigns have periodically called for boycotts of IKEA over its commercial presence in Israel. Separately, Kamprad faced scrutiny in the 1990s after investigative reporting revealed he had been a member of a pro-Nazi organisation in Sweden during his youth, a period he later acknowledged and expressed regret for.

IKEA is structured as a complex group of foundations and companies, with Inter IKEA Group controlling the brand and concept, and Ingka Group operating the majority of stores. Kamprad restructured the company through Dutch and Liechtenstein-based entities in the 1980s and 1990s. He remained active in the business until his death in 2018. Today, the IKEA network operates more than 400 stores across over 50 countries.