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Swedish furniture retailer IKEA has announced the sale of $5.58 billion in key subsidiaries by IKEA Group as part of its effort to revamp its image and adapt to changing consumer preferences, which are deviating from the vast out-of-town store concepts. According to Fortune, the transaction was initiated by Inter IKEA Holding BV to boost profits by 23 percent at IKEA Group and also to shift creative control over to Inter IKEA to overhaul the retail model first established during the 1980s. It is one of the world’s largest retail transactions this year.
The shifting of rights will allow IKEA Group to introduce the sale of IKEA products through new channels like urban locations. Certain product lines will also be examined.