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He worked 100-hour weeks to save a nearly bankrupt boat company. At 83, he’s just turned down $400 million for it—and gave it all to charity instead

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Costco's $14 million email settlement: Who qualifies for an up-to $500 payment and how to claim before the Aug. 24 deadline

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RetailIKEA

Here’s why Ikea is buying entire forests

By
Benjamin Snyder
Benjamin Snyder
Managing Editor
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By
Benjamin Snyder
Benjamin Snyder
Managing Editor
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July 31, 2015, 1:15 PM ET
An Ikea store in Covina, Calif.
An Ikea store in Covina, Calif.Photograph by John Sciulli—Getty Images
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Ikea is buying up forests to keep tighter control over the wood it uses to produce its iconic, easy-to-assemble furniture.

The Swedish furniture company bought a Romanian forest earlier this month, The Wall Street Journal reports. The wood from the forest will be used to create products for a store in Bucharest.

Ikea’s move comes as the company has been working to become more environmentally friendly. Earlier this year, Ikea was banned from cutting down trees in Russia, though the ban was lifted a month later.

 

The company has also been trying to become more efficient while simultaneously expecting to sell more inventory than ever before. Per the Journal:

IKEA in 2012 set a target to double sales to €50 billion ($55 billion) by 2020. That involves more than doubling the volume of products it sells, said IKEA’s head of sustainability, Steve Howard, since the retailer tries to lower overall prices slightly every year. Despite this, IKEA is aiming to increase the wood it uses by only about 50%, Mr. Howard said in an interview.

For more on Ikea, check out Fortune’s in-depth feature on the company’s transformation in recent years.

About the Author
By Benjamin SnyderManaging Editor
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Benjamin Snyder is Fortune's managing editor, leading operations for the newsroom.

Prior to rejoining Fortune, he was a managing editor at Business Insider and has worked as an editor for Bloomberg, LinkedIn and CNBC, covering leadership stories, sports business, careers and business news. He started his career as a breaking news reporter at Fortune in 2014.

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