Ikea founder Ingvar Kamprad is stepping down from the board of Inter Ikea Group. The company’s founder will be replaced by his youngest son Mathias Kamprad.
In a statement released by Ikea Group on Wednesday, it was revealed that Mathias Kamprad is replacing Chairman Per Ludvigsson. The group says it has been planning the “generational shift” for some time now.
The 87-year-old Ikea founder started his sales career at the age of five, selling matches to his neighbors. In 1943, Ikea was founded and rose to become the largest seller of home-furnishings in the world. Ingvar Kamprad left his CEO position with the company in 1986.
Speaking in the company’s statement, Kamprad says: “I see this as a good time for me to leave the board of Inter Ikea Group.”
While Ingvar will leave Ikea’s board of directors he plans to continue working. The Ikea founder still remains on the board of Liechtenstein-based Interogo Foundation, the company that owns Ikea and various other business entities. Kamprad remains a senior adviser to the parent company of the Ikea Group, which owns most of the world’s Ikea stores.
Ikea’s founder is stepping down during a time of prosperity. Inter Ikea Group watched net profits rise to 443 million euros ($579 million) in 2012, up from 87 million euros the year prior thanks to a one-time gain. The company also reported a 9.5 percent revenue increase to $2.66 billion euros.
In taking over the company Mathias Kamprad writes:
“Our main task will always be to ensure a long life for the Ikea concept by keeping the needs of the many people in mind. As this will require investments in both good and bad times, the group strives to be financially independent.”
While the youngest child will take over the company’s head position from the Ikea founder his brothers also work for the company. Peter works in finance and real estates while Jonas sits on the board of Ingka Holding.