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WEALTH

Kamprad receives big Ikea dividend

Ingvar Kamprad, founder of the Ikea furniture chain, has received a extra dividend of 600 million kronor ($89.2 million) from the company's Swedish operations. The dividend comes in addition to the ordinary dividend of 850 million kronor, making a total of 1.45 billion kronor.

The dividend will be paid to Ikea’s global holding company, Ingka Holding, based in the Netherlands, according to Svenska Dagbladet, which has seen the minutes of Ikea’s extraordinary general meeting in March. In practice, the payment to Ingka Holdings means a boost to the wealth of the Kamprad family, the paper writes.

The dividends relate to the financial year 1st September 2005 – 31st August 2006. In the previous year the company made payouts of around 1.7 billion kronor.

The minutes show that profits for the current financial year will be somewhat lower than those of last year. They will nonetheless be at “a very satisfactory level”, the minutes record. The dividend payments will not affect the company’s investment plans, the paper writes.

IKEA

Ikea will buy back your used furniture at up to half the price

In the run-up to what would in normal times be the festive season sales rush, Ikea has vowed to buy back used furniture from customers to resell – and pay up to 50 percent of the original price.

Ikea will buy back your used furniture at up to half the price
Got any pieces of Ikea furniture at home? You may be able to get rid of it and get money back. Photo: Fredrik Sandberg/TT

Ikea, the world's largest furniture chain, said Tuesday it would begin buying back used furniture from customers to resell – and pay up to 50 percent of the original price.

The “Buy Back Friday” scheme, timed to coincide with the “Black Friday” pre-Christmas retail frenzy, will run from November 24th and until December 3rd in 27 countries.

“Rather than buy things you don't need this Black Friday, we want to help customers give their furniture a second life instead of making an impulse buy,” said Stefan Vanoverbeke, deputy retail operations manager at Ingka Group, Ikea's parent company.

To address concerns its affordable, flat-pack products encourage overconsumption and waste, the Swedish company had previously said it would start renting and recycling furniture as part of an eco-drive.

Under its buyback scheme, the group said that “anything that can't be resold will be recycled or donated to community projects to help those most affected by the Covid-19 pandemic”.

“Some countries like Australia and Canada for example are currently testing different buyback services, but BuyBack Friday will be the first time that 27 countries do this together,” the statement added.

The Swedish giant employs over 217,000 people and has more than 50 outlets. Its annual turnover is around 40 billion euros ($46 billion).

The group did not specify how it would determine the price paid for second-hand furniture and customers will receive a voucher, not cash, for their products.  

As part of efforts to reduce waste, Ikea has already begun repairing and re-packaging products in every store that have been damaged in transit, as well as allowing customers to return products – including furniture – for resale or donation to charities.

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