Build story · Sweden · 1943–2023
IKEA: flat-pack furniture and customers who build it themselves
IKEA designed furniture to ship flat and be assembled by customers, cutting transport, storage, and labour costs — and building the world's largest furniture retailer.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Founded
- 1943
- Flat-pack idea
- 1956
- First store
- 1958, Älmhult
- Retail sales (FY2023)
- about €47.6 billion
What happened
Ingvar Kamprad founded IKEA in 1943, aged 17, selling small goods by mail. In 1956 an employee removed the legs from a table so it would fit in a car — and the flat-pack idea was born. The first IKEA store opened in Älmhult, Sweden, in 1958.
IKEA designed products from a target price backwards. Flat packs cut shipping and storage costs, and customers did the picking and assembly themselves. Large showrooms displayed furniture in real room settings; warehouses let customers take items home the same day. The catalogue, cafés, and children's play areas made the trip a day out.
IKEA grew into the world's largest furniture retailer, with retail sales of about €47.6 billion in fiscal 2023 and over 450 stores.
Timeline
- 1943
IKEA founded.
- 1956
Flat-pack furniture begins.
- 1958
First store opens.
- 1974
Expands into Germany.
what made it work
- Customers do part of the work in return for low prices.
- Designing to a target price.
- Store experience turned shopping into an outing.
the lesson
Letting customers do part of the work can cut your costs — and they value what they build themselves.
Apply it to your business
- 1Which part of your service could customers do themselves?
- 2Set the price first and design backwards.
- 3Make the buying experience enjoyable.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.