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IKEA

Ikea founder rated fifth richest in the world

Ingrad Kamprad, the founder of Swedish furniture giant Ikea, finished fifth on the Bloomberg Billionaires Index published on Friday, with an estimated fortune of $55.6 billion.

Ikea founder rated fifth richest in the world

Kamprad was the second wealthiest European on the list, after Spain’s Amancio Ortega, owner of the retail Zara chain, who finished fourth.

Another Swede, H&M’s chairman Stefan Persson, squeezed inside the top 20 with an estimated wealth of $25.5 billion.

Ikea pulled in more than $36 billion in revenue and $4 billion in net income in 2012, Bloomberg wrote. Ikano Group, Kamprad’s family’s investment vehicle, manages four Ikea franchises, a credit card business, and real estate investments.

Kamprad refused to comment on the ranking, in which Bloomberg noted that Kamprad fled Sweden in the seventies due to the high tax rates and that he started his career early, at the age of five, selling matchsticks to neighbours.

Bloomberg’s index provides updated information accounting for the latest movements in the stock market. The list provides information and a transparent analysis of how each billionaire’s fortune was calculated.

Bill Gates topped the list for the first time since 2007, with an estimated wealth of $72.7 billion. Other billionaire heavyweights in the ranking include Carlos Slim (who topped the list last year), and Warren Buffet.

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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