Ikea to focus on emerging markets under new CEO

New York: Ikea, the world's largest home- furnishings retailer, said Mikael Ohlsson will succeed Anders Dahlvig as chief executive officer this year, entrusting the business to a 30-year company veteran.

Ohlsson, Ikea's regional manager for southern Europe and North America, will take up the position in September, the company said on Sunday. Dahlvig has been CEO since 1999.

"This is a planned succession," Ikea spokeswoman Charlotte Lindgren said. "Anders Dahlvig has been CEO for 10 years and he has now finalised his strategy. So now it's time for a new CEO who will implement the changes that Anders Dahlvig has set."

Ohlsson, 51, will seek to revive sales growth at Leiden, Netherlands-based Ikea, which slowed its expansion last year as the global economic slowdown eroded sales. Under Dahlvig, 51, the retailer expanded in Europe, North American and Asia and entered new markets including Russia, Japan and Portugal.

"We will have slightly slower growth in new stores than we had over the last few years, something like 15 stores per year, rather than 20 plus," Dahlvig said in an interview.

Ikea's focus will be less on countries like the US and UK, where it won't open any stores over the next two years, Dahlvig said, when asked about the company's expansion plans. Emerging markets like China and Russia will be among the markets "we will be focusing on," he added. The retailer doesn't plan to close any stores or exit any markets in the near future.

Dahlvig said he will still devote "some time" to Ikea after September and will ensure a "smooth transition," while "primarily I will look for other opportunities."

The new CEO started out in the carpet unit of Ikea's Linkoeping store in Sweden and has been a member of the executive management group for 15 years.

"We're currently working on the next long-term strategy," Ohlsson said by phone. "Ikea has a clear vision about providing home-furnishing products at very low prices and high quality and we will continue to do that."

Ikea now has more than 260 stores worldwide and reported sales of about 21.2 billion euros (Dh102.98 billion) last year.

Ohlsson "is well suited to continue the change process that Anders Dahlvig has initiated," Goeran Grosskopf, chairman of Ikea's parent company Ingka Holding BV, said in a statement today. "Increased competition and the crisis in the global economy are also strong reasons for us to review our business."