The affordable furnishings giant, Swedish based IKEA, is
slowly invading the U.S. with its’ trademark yellow and blue stores.
With plans to open five new stores each year, IKEA is changing the way
Americans shop for furniture. With the continued upward swing in
success, IKEA has the eyes of investors closely watching and waiting.
Originally founded by Ingvar Kamprad with the first store opening its’
doors in Sweden in 1958, IKEA now spans more than 200 stores in over 30
different countries. Even with this growth, IKEA hasn’t lost touch with
customers. IKEA is prized with producing eye-catching, functional
furniture at affordable prices that would even fit in a first time home
owners’ or apartment dwellers’ budget. Their focus is always on the
customer, not only delivering furniture that the customer wants but
also for the price that the customer is willing to pay. In fact, their
philosophy is to work from the ground up. They decide on an item that
is needed, determine how much the customer is willing to pay, then
figure out how to make it sleekly designed, very functional, and
quality sound, and still make a profit. Part of the cost savings is
based on the self service atmosphere of the store. Sounds like a lot of
work but pays off as it makes an attractive combination that makes it
fun to shop at IKEA.
So why is it then that IKEA is not traded publicly? Keeping the IKEA
concept at heart, they only have to answer to themselves and to their
customers. They do what has proven to work and sidestep the questions
of would be shareholders. Why go public if you don’t have to? Expanding
at their own pace, much slower than most companies would in America,
but they are destined to have as great a presence in the U.S. as they
do in their homeland of Sweden.
The privately held company offers up no future plans of an Initial
Public Offering. Investors are waiting in the wings, but for now, they
will have to purchase their own franchise if they truly want to invest
in IKEA.
If you have ever stepped foot inside an IKEA store, browsed their
catalog, or surfed their website you will instantly see why they are so
appealing. The price is right for what you get but the quality is not
sacrificed. IKEA offers up everything from complete bedroom suites,
kitchen cabinets, business furniture solutions, storage and
entertainment centers, to mattresses, floor and window coverings, to
dishes, bed and bath linens. The stores themselves are eye candy,
provide a family environment complete with child care, and be sure not
to miss the world famous meatballs from their own restaurant!
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