Acquired · Nov 17IKEA
It runs about 400 of the 476 stores, roughly 90%, and owns 44 shopping centers built around them. Its operating margin fell from about 8% to 3 to 5% as e-commerce grew, and the 3% royalty to Inter IKEA takes about half its operating income.
Tips
- Kamprad set up IKEA as self-owned foundations so no heirs, shareholders or governments could break it▶ 1:42:00The Kamprad family sits on the boards but cannot control either company, even all three sons together.
- IKEA resisted e-commerce in the 2000s and its margins suffered when it finally embraced it▶ 2:14:00Ingka's operating margin fell from about 8% to a 3 to 5% range as e-commerce grew from 2018, even as revenue grew about 5% a year.
- IKEA bought land and built shopping centers around its stores to capture the traffic it creates▶ 2:08:10Ingka has 44 shopping centers, and bought a building on Market Street in San Francisco.
