History. IKEA History 1920s-1950s

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1 History The following history shows how over six decades IKEA went from the woods of southern Sweden to being a major retail experience in 40 countries/territories around the world. The IKEA story begins when founder Ingvar Kamprad is born in Småland in southern Sweden. He is raised on 'Elmtaryd', a farm near the small village of Agunnaryd. Even as a young boy Ingvar knows he wants to develop a business. Go to decade: 1920s-1950s, 1960s-1970s, 1980s, 1990s, 2000s IKEA History 1920s-1950s 1926 Ingvar Kamprad is born At the age of five Ingvar Kamprad starts selling matches to his nearby neighbours and by the time he is seven, he starts selling further a field, using his bicycle. He finds that he can buy matches in bulk cheaply in Stockholm and re-sell them individually at a very low price but still make a good profit. From matches he expands to selling flower seeds, greeting cards, Christmas tree decorations, and later pencils and ball-point pens IKEA is founded by Ingvar Kamprad When Ingvar Kamprad is 17, his father gives him money as a reward for succeeding in his studies. He uses it to establish his own business. The name IKEA is formed from the founder's initials (I.K.) plus the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he grew up. IKEA originally sells pens, wallets, picture frames, table runners, watches, jewellery and nylon stockings - meeting needs with products at reduced prices The first IKEA advertisements appear Ingvar Kamprad's business outgrows his ability to make individual sales calls, so he begins advertising in local newspapers and operating a makeshift mail-order service. He uses the local milk van to deliver products to the nearby train station Furniture is introduced into the IKEA range The furniture is produced by local manufacturers in the forests close to Ingvar Kamprad's home. The response is positive and the line expands.

2 1951 The first IKEA catalogue is published IKEA's founder sees the opportunity to sell furniture on a larger scale using a catalogue. The IKEA catalogue that we know today is born Furniture showroom opens in Älmhult, Sweden This is an important moment in the development of the IKEA concept - for the first time customers can see and touch IKEA home furnishings before ordering them. The showroom is born out of a price war with IKEA's main competitor. As both companies lowered prices, quality was threatened. By opening the showroom, IKEA clearly demonstrates the function and quality of its low-price products. The innovation is a success; people wisely choose the products with the best value for money Designing furniture for flat packs and self-assembly IKEA's decision to design its own furniture stems, ironically, from competitor pressure for suppliers to boycott IKEA. Exploration of flat packing begins when one of IKEA's first co-workers removes the legs of the LÖVET table so that it will fit into a car and avoid damage during transit. After this discovery flat packs and self assembly become part of the concept The first IKEA store opens in Sweden The first IKEA store in Älmhult has 6,700 square metres of home furnishings! At the time, it is the largest furniture display in Scandinavia. Gillis Lundgren designs the TORE drawer unit While visiting one of IKEA's kitchen manufacturers, one of IKEA's earliest co-workers, Gillis Lundgren, notes the simple, practical storage ideas being used in IKEA kitchens and is inspired to apply the same thinking throughout the home. As soon as he gets back to Älmhult he sits down and designs the TORE drawer unit Our co-workers The 100th co-worker joins IKEA. IKEA History 1960s-1970s

3 Back to top 1960 The first IKEA restaurant The first IKEA restaurant opens in the IKEA store in Älmhult, Sweden Product testing begins IKEA begins quality testing its products using Swedish testing standards. ÖGLA chair on sale The ÖGLA cafe chair is launched with the IKEA concepts of form, function and price in mind. Today it is made of composite plastic in order to further reduce transportation costs Marian Grabinski designs the MTP bookcase The MTP bookcase is a contemporary classic and will see numerous imitations over the years. Developing this and other wooden products develops strong relationships between IKEA and Polish suppliers during the 1960s. These relationships continue today and are an important reason for IKEA maintaining low prices so that the many people can afford them IKEA arrives in Norway The first IKEA store outside Sweden opens in Oslo Largest IKEA store opens in Stockholm, Sweden Thousands of people queue for the opening of the 31,000 square metres flagship store, IKEA Kungens Kurva. The store has a circular design, inspired by New York's Guggenheim Museum. The store's success leads to the opening of a selfserve warehouse - an important part of the IKEA concept is born. Additionally, Accenten is opened, where customers can buy quality cooking items at a low price Particleboard makes its mark This inexpensive, hard-wearing and easy-to-process material is a natural fit for IKEA. In 1969, the PRIVAT sofa is designed by architect Åke Fribryter. It has a particleboard base with a white lacquer finish and brown floral cretonne covers by textile artist Sven Fristedt. The straight lines, no-nonsense practicality and unbeatable low price are a tremendously successful combination.

4 1969 IKEA arrives in Denmark The first IKEA store opens in Copenhagen IKEA arrives in Switzerland The first IKEA store outside Scandinavia opens in Zurich. Denim used for furniture TAJT, a multifunctional seat/recliner, is one of many good examples of how IKEA sometimes does things differently. By using a low-cost raw material from another industry, in this case denim, a hard-wearing and low-priced product is created IKEA arrives in Germany The first IKEA store opens in Munich. The success in Switzerland paves the way for a rapid expansion into Germany, which today is IKEA's largest market. SKOPA chair raises eyebrows Choosing a manufacturer for the SKOPA chair, designed by Olle Gjerlöv-Knudsen and Torben Lind, is wonderfully simple, even if it raises a few eyebrows. SKOPA is developed by a supplier that usually makes plastic buckets and bowls, creating a chair in which form and function are not compromised by an unorthodox solution IKEA arrives in Australia The first IKEA store opens in Sydney IKEA arrives in Canada The first IKEA store opens in Vancouver POEM is launched (later known as POÄNG) Another IKEA classic is born, the comfortable armchair POEM made of laminated wood, which will later evolve into POÄNG. The Testament of a Furniture Dealer Ingvar Kamprad writes The Testament of a Furniture Dealer and in 1976 it is published - it documents IKEA's vision and business idea and has a strong influence on the development and vitality of IKEA's culture. 1977

5 IKEA arrives in Austria The first IKEA store opens in Vienna BILLY bookcase is born The BILLY bookcase is introduced into the range - an IKEA classic IKEA arrives in the Netherlands The first IKEA store opens in Rotterdam. IKEA History 1980s Back to top 1980 KLIPPAN sofa - another IKEA classic The KLIPPAN evolves into a sofa tough enough to stand up to the kind of punishment only children know how to dish out, yet soft enough to fall asleep on during long bedtime stories. The entire cover can be removed for machine washing. LACK table arrives This low-priced, functional coffee table is made with a technique that is normally used for interior doors, making the table very strong and light. This sandwich technique is called board-on-frame and will be used in many IKEA products in years to come IKEA arrives in France The first IKEA store opens in Paris IKEA Group is formed The IKEA Group is formed and its owner is a foundation, the Stitchting INGKA Foundation, which is based in the Netherlands. LACK range is extended To complement the LACK table, LACK shelves are designed.

6 1984 IKEA arrives in Belgium The first IKEA store opens in Brussels. STOCKHOLM range of furnishings appears IKEA designs a series of high-quality furnishings using some well-loved materials - birch wood, leather and cretonne. The range has everything you would expect of high-quality classics, except the high price tag. STOCKHOLM is a winner of the Excellent Swedish Design award. IKEA catalogue numbers increase The IKEA catalogue print run expands to 45 million copies, in nine languages. IKEA FAMILY is launched IKEA FAMILY, the new customer club, is launched. Today, IKEA FAMILY is in 24 countries (over 235 stores) and has about 40 million members IKEA arrives in the USA The first IKEA store opens in Philadelphia. Our co-workers IKEA now has 10,000 co-workers and 60 stores in the IKEA Group. MOMENT sofa is designed by Niels Gammelgaard When IKEA looks for a suitable manufacturer, visits to a supermarket-trolley factory prove successful in utilising knowledge of strength and stability. IKEA takes this as a starting point to create a stylish, comfortable and low-priced sofa with a modern look. The matching table, designed in 1987, wins the Excellent Swedish Design award - something few supermarket trolleys can boast of New president and CEO Ingvar Kamprad retires from Group Management to become an advisor to the parent company INGKA Holding B.V. Anders Moberg becomes President and CEO of the IKEA Group IKEA arrives in the UK The first IKEA store opens in Manchester. 1989

7 IKEA arrives in Italy The first IKEA store opens in Milan. IKEA History 1990s Back to top 1990 IKEA arrives in Hungary The first IKEA store opens in Budapest. IKEA's first environmental policy The IKEA Group develops an environmental policy to ensure that the company and its co-workers take environmental responsibility for all activities conducted within its business IKEA arrives in the Czech Republic and Poland The first IKEA store in former Czechoslovakia opens in Prague. The first Polish IKEA store opens in Poznan. Swedwood, IKEA's industrial group IKEA acquires its own sawmills and production plants and establishes the industrial group Swedwood to produce wood-based furniture and wooden components IKEA and FSC The IKEA Group becomes a member of the global forest certification organisation Forest Stewardship Council (FSC) MAMMUT Daring to be different. A whole furniture series for children is introduced that not only meets the demands of wild childish imaginations, but also stands up to the wildest of children's games. All the products are made of tough, resilient materials and have rounded corners for safety The first IKEA PS collection is launched Launched at the same time as the Furniture Fair in Milan, PS stands for POST SCRIPTUM, or the latest

8 additions to the world of IKEA design. The IKEA PS collection is one way of sharing IKEA's design values - form and function at a low price. IKEA PS gives designers free rein to shape the latest creations, where the aim is to create products that are emotional, fun and less predictable, appealing to those who prefer an individual taste to a common style IKEA arrives in Spain The first IKEA store opens in Barcelona. DAGIS kids chair by Richard Clack is born Richard Clack obviously takes a long, hard look at kids before he designs this chair. Children do not have sharp corners, they are fairly soft but can stand up to a little rough and tumble now and again. So he designs his chair to suit the needs of children with one little improvement - the chairs come in stackable versions to save space and make moving them easier IKEA on the web The IKEA web site is launched. Children's IKEA is launched IKEA offers furnishings for the entire family, but because kids are the most important people in the world, IKEA decides to develop a range specifically for them. We work with many experts to develop products that are good for the development of kids' co-ordination skills, social skills and creativity. The products we launch in 1997, and continue to sell today are chosen by the most important experts: kids themselves. Even our stores take care of children's needs by providing play areas, children's room settings, baby areas and special meals in the restaurant. IKEA 365+ for all the days of the year The IKEA 365+ range is launched - a range of functional, attractive everyday products for preparing, cooking, serving and eating food. The products are designed to make kitchen work easier and more enjoyable, at the same time bringing a little more beauty into everyday life with their form and colours IKEA arrives in China The first IKEA store opens in Shanghai. The first forestry manager is employed at the IKEA Group IKEA employs its first forestry manager to work fulltime with securing sustainable use of forestry resources. 1999

9 Our co-workers and stores The IKEA group grows to 50,000 co-workers and has 158 stores in 29 countries. A new President and CEO Anders Dahlvig becomes President and CEO of the IKEA Group, taking over from Anders Moberg. The Big Thank You event The unique Big Thank You event on 9 October 1999 is a millennium reward for the many co-workers within the IKEA Group. The total of all sales on this special day, worldwide, is divided among all co-workers - in total about million euros. It is a great way to thank hard-working IKEA co-workers for contributing to the company's ongoing success. Improving education in Kosovo The IKEA Group donates funds to UNICEF and Save the Children to assist in the re-building of schools, the provision of educational materials for children and the special training of teachers in war-torn Kosovo. IKEA wins international award for VÄRDE kitchen VÄRDE is a new way of thinking about kitchens. Its unique modular design allows customers to create an entire kitchen from scratch or simply add a piece here or there. The innovative design, functionality, ergonomics, ecological compatibility and durability combined with attractive design, helps VÄRDE win the Red Dot Award for Highest Design Quality, which is organised by Design Zentrum Nordrhein Westfalen in Germany. IKEA History 2000s Back to top 2000 IKEA arrives in Russia The first IKEA store opens in Moscow. A code of conduct is launched

10 The code of conduct called The IKEA Way on Purchasing Home Furnishing Products (IWAY) is launched. It defines what suppliers can expect from IKEA and specifies what IKEA expects from its suppliers in terms of legal requirements, working conditions, active prevention of child labour, external environment and forestry management. In addition to this, IKEA also introduces The IKEA Way on Preventing Child Labour to ensure that no child labour is used by our suppliers or their sub-contractors. Child rights project in India The IKEA Group, in co-operation with UNICEF, initiates a broad community programme in northern India to address the root causes of child labour. The project includes 500 villages and will benefit more than 1 million people, providing more than 80,000 children with an opportunity for an education. At, present, the project covers a range of initiatives, such as providing alternative learning centres, health and nutrition, education, empowering women and forming women's self-help groups. IKEA customers can shop online E-shopping is launched in Sweden and Denmark. Since then many other markets have started offering online shopping at IKEA IKEA Rail begins The IKEA Group trials running its own rail operations through IKEA Rail AB. The train runs five round trips a week between Älmhult, in Sweden, and Duisburg, in Germany. In 2004 rail operations are taken over by an external company, with IKEA continuing to use this route. The use of rail continues to be an important part of IKEA's strategy to promote sustainable transportation of IKEA material and products. Another innovative product IKEA becomes one of the first manufacturers to produce furniture with patterns produced directly on fibreboard and particleboard, in a factory in Poland. This technique is called print-on-board. Anders Dahlvig speaks at a Greenpeace conference in London IKEA has a long tradition of co-operating with different NGOs such as Greenpeace, a co-operation which started in Over the years, this has helped IKEA phase out the use of bleach for printed materials, the use of PVC in products, as well as working towards protecting natural intact forests. A new head office for the IKEA Group The IKEA Group moves its head office from Humlebaek in Denmark to Leiden in the Netherlands. Inter IKEA Centre Group is formed Inter IKEA Centre Group was founded in March 2001 to become a Holding company for shopping centres with an IKEA store as an anchor. The group is owned and controlled by by the Inter IKEA Group and the

11 IKEA Group and today operates in Poland, Germany, Austria, Czech Republic, Slovak Republic, France, Spain, Portugal, Croatia, Serbia and Slovenia, with headquarters in Denmark IKEA recovery is launched A new product-recovery concept is implemented in more than 100 IKEA stores in Europe to ensure that returned products are, where possible, repaired instead of being wasted. The IKEA and WWF Co-operation on Forest Projects In 2002, the global conservation organisation WWF and the IKEA Group join forces to promote responsible forestry in priority regions around the world. The two organisations initiate a series of global and regional forest projects to support the development of responsible forestry The fourth IKEA PS collection is launched The focus is on innovative products with the specific ambition to inspire children to play and enjoy physical activity. The range also includes the successful IKEA PS BRUM soft toy. During customers help to raise more than 2.1 million euros by purchasing a PS BRUM soft toy at an IKEA Group store. These funds are donated to UNICEF projects for children in Angola and Uganda IKEA arrives in Portugal The first IKEA store in Lisbon. First environment report The IKEA Group publishes its first Social & Environmental Responsibility Report. It is launched on the web and gives information as well as facts and figures. The 200th IKEA store opens The IKEA New Haven store in the US is the 200th IKEA Group store worldwide Everything for the bedroom under one roof A complete and co-ordinated collection of bedroom furnishings is launched, including everything from mattresses to smart storage solutions and textiles for all tastes. IKEA expands its focus to kitchen solutions IKEA wants to make life in the kitchen easier, after all it is one of the most-used rooms in the house. So IKEA looks into all the ways life in the kitchen can be more fun. The result is a wide range of coordinated kitchens and dining furnishings that make kitchen life easier.

12 IKEA customers help children in need Customer purchases of IKEA soft toys help raise funds for UNICEF and Save the Children projects focussing on children and their welfare. This yearly campaign has to date raised a total of 4.8 million euros. The fifth IKEA PS collection is launched What if the wildest ideas become the wisest solutions? The fifth IKEA PS collection is launched under the headline 'What If...?' Twenty-eight designers develop a range in which innovation is the key word for materials, design, function and techniques. The range includes everything from rugs with hinges and pillows for your feet, to t-shirt-shaped cushions and rocking dining chairs made from wooden plastic. IKEA and WWF co-operate on cotton cultivation IKEA is working together with WWF to promote better methods of cotton cultivation. About 2,000 farmers in Pakistan are being trained in Farmer Field Schools. In 2006, the cotton cultivation project expands to India, where 500 farmers are being trained. The discovery-based learning process encourages the farmers, many of them illiterate, to adopt more sustainable production practices that serve as a good example to others in the region. IKEA gives in-kind donations Schools in Liberia and Burundi receive 9,000 tables each for a UNICEF school project. After the tsunami, IKEA gives UNICEF an in-kind donation of 125,000 bed sheets, 100,000 quilts, 18,000 blankets, 145,000 toys and 300 mattresses to help victims in Indonesia, Sri Lanka and India. IKEA Social Initiative An organisation called IKEA Social Initiative is formed to handle global community involvement through its partnerships with Save the Children and UNICEF IKEA arrives in Japan After previous explorations of Japan with a joint venture in the 70s, the IKEA Group opens its first fully-owned store in Tokyo. IKEA food label IKEA launches its own food label covering about 30 percent of the 150 products in its food range. The range focuses on highquality food products based on Swedish recipes and tradition, for a low price. The products have an IKEA label and are sold in Swedish Food Markets in IKEA stores and are also served in IKEA restaurants. Our co-workers The IKEA Group exceeds 100,000 co-workers and operates in 44 countries.

13 Preventing illegal logging The IKEA Group and WWF join forces to curb illegal logging in Russia and reward legal forestry in Russia and China. WWF Russia is actively participating in government working groups to find solutions to illegal logging on the national and regional level. For example, regional anti-illegal logging brigades receive technical assistance to conduct monitoring and gain control over logging activities.

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