The Evolution of Ikea: Insights from CEO Jesper Brodin
In the latest episode of our video series, My Business Leader Secret, we engage with Jesper Brodin, the CEO of Ingka Group, which oversees Ikea’s global retail operations. Since stepping into the role in 2017, Brodin has been pivotal in steering Ikea through a transformative phase, adapting to today’s rapidly changing retail landscape.
A Brief Background on Ikea
Founded in the 1940s, Ikea began its journey with a vision to make affordable, well-designed home furnishings more accessible. Brodin, who previously worked within the Inter Ikea Group—where products are designed and the brand is managed—has first-hand experience of the company’s robust legacy. Employing over 216,000 people and managing more than 500 stores worldwide, Ingka Group boasts a turnover exceeding €40 billion. This scale of operation highlights Ikea’s impact on global retail.
Shifting Strategies: From Big Boxes to Urban Stores
Under Brodin’s leadership, Ikea is navigating a significant strategic shift. For over fifty years, the company thrived with large-scale out-of-town warehouses complemented by expansive parking lots, providing families an enjoyable day out—including a meal. The first of these stores, inaugurated in Stockholm during the 1950s, became a model for retail success.
However, by 2007, it became clear that Ikea needed to rethink its strategy in light of the burgeoning digital shopping movement. The past decade has seen the company pivot towards developing smaller, inner-city stores, a move designed to tap into contemporary shopping behaviors. This evolution is not just about size; it’s a conscious response to consumer habits, catering to individuals who might rely on public transport rather than driving to a sprawling warehouse.
Embracing the Digital Age
Brodin’s strategy is about meeting customers where they are—literally and figuratively. The new inner-city locations provide an opportunity for customers to browse products physically and then utilize click-and-collect services or opt for home delivery. This dual strategy integrates the tactile experience of shopping with the convenience of digital retail, appealing particularly to those living in urban environments.
A Vision for Leadership
During our conversation with Brodin at Ikea’s forthcoming inner-city store in Oxford Circus, London, scheduled to open in the spring of 2025, he shared insightful advice for fellow business leaders: “Manage challenges but lead from opportunities.” This philosophy embodies a proactive approach, encouraging leaders to navigate difficulties by recognizing and capitalizing on emerging opportunities.
Brodin’s journey exemplifies how leadership in retail is evolving. As he continues to drive Ikea forward with innovative strategies, it will be intriguing to see how these changes impact the landscape of home furnishings and retail at large.
For a deeper dive into Brodin’s insights and the ongoing evolution of Ikea, check out the complete series of My Business Leader Secret.
