IKEA was founded in 1943 by Ingvar Kamprad when he was 17.
Kamprad started the business in Älmhult, Sweden, selling small goods such as pens, wallets and picture frames. The name IKEA is formed from his initials, the family farm Elmtaryd and the nearby village Agunnaryd. Furniture became the company’s main focus during the 1940s and 1950s.
IKEA’s distinctive retail model combines flat-pack furniture, customer self-assembly and large stores arranged as showrooms. The approach reduces transport and storage costs while allowing customers to see furnished room settings before buying products for home assembly.
The first IKEA store opened in Älmhult in 1958. Although the brand is Swedish in origin, its corporate structure is divided among several entities, including the Inter IKEA and Ingka groups. That structure is why simple descriptions of IKEA’s ownership can be misleading.