Ikea transforms its business to stay ahead of disruption

A New Era for Ikea’s Leadership

When Jesper Brodin took over as chief executive of Ingka Group, the main operator of Ikea stores, in 2017, few indicators suggested looming trouble. However, he quickly recognized that the rise of online retail and shifting consumer habits were placing serious pressure on Ikea’s traditional business model.

Brodin’s mission became clear: modernize Ikea before disruption struck.

Embracing Change and Innovation

Ikea began overhauling its global operations to become more nimble and customer-oriented. The company started testing smaller urban stores, investing heavily in e-commerce, and improving its supply chain logistics.

Brodin emphasized the need to balance digital growth with Ikea’s physical roots:

“We don’t see online and offline as competitors; they are parts of one seamless experience.”

This shift extended to product design and sustainability efforts, with the company launching circular initiatives to promote furniture re-use and recycling.

Tackling Structural Challenges

Expanding globally required more than opening stores in new countries. Ikea faced hurdles like adapting to local market preferences and maintaining affordability amid rising raw material costs. Ingka Group also undertook internal restructuring to simplify decision-making and reduce bureaucratic delays that once slowed innovation.

Brodin highlighted employee empowerment as central to Ikea’s transformation, pushing teams to take more initiative in digital projects and customer experience design.

Looking Toward a Digital Future

Today, Ikea positions itself as a digital-first, human-centered company. Online sales have surged, and the brand continues to experiment with new store concepts combining online ordering and in-store pickup.

While traditional shops remain vital, Ikea sees their role evolving into community-oriented spaces rather than just retail outlets. Brodin believes this hybrid approach will help preserve the company’s values while keeping it competitive in a rapidly changing industry landscape.

“Transformation is not optional—it’s a way to stay true to who we are while preparing for what’s next.”

Author’s summary: Ikea accelerates its shift toward digital commerce and sustainability under Jesper Brodin’s leadership to stay competitive amid global retail disruptions.

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Financial Times Financial Times — 2025-11-27

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