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IKEA

Ikea brand sold for 75 billion kronor

The Ikea brand has been sold for 75 billion kronor ($11.2 billion) to one of the Swedish furniture giant’s daughter companies, with experts saying that the price tag is "reasonable".

Ikea brand sold for 75 billion kronor

The brand was sold by the Kamprad controlled Interogo, based in the tax haven of Liechtenstein, to daughter company Ikea Systems in the Netherlands.

And 75 billion kronor is not an unreasonable sum, according to one expert.

“If you buy Ikea’s brand you are simultaneously buying all the customer relations and good will that the company has worked for. That’s what you pay for – not the logo,” explains Bengt Håkansson of Brand Clinic to the TT news agency.

There can be two companies within one branch that are roughly the same size with the same market, yet one will have a large amount of customers where the other is struggling to stay alive.

“One is bought and the other sold. Ikea is a brand that is bought to a very high degree. It combines low prices with cultural values. People like Ikea no matter what,” Håkansson said.

“Kamprad has succeeded in getting people to know that deep down, he is a good man and has done something good for Sweden. It’s infinitely valuable to have won over so many people’s consciousness.”

The Ikea brand ranks 89th among the world’s 100 most valuable brands, but is not the highest ranking Swedish company.

Clothes retailer H&M is ranked 58th – a brand worth an estimated 125 billion kronor.

TT/The Local/og

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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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