IKEA Has a New CEO

May 24, 2017, 10:02 AM UTC

IKEA Group, the owner of most IKEA budget furniture stores worldwide, said on Wednesday it had picked company veteran Jesper Brodin to be its new chief executive, replacing Peter Agnefjall who will leave the company.

The furniture group said in a statement Brodin, currently head of IKEA of Sweden and responsible for the development of the product range and supply chain, would take over on Sept. 1. He has been with the company for more than 20 years.

IKEA, known for selling self-assembly furniture from giant out-of-town stores, has been stepping up efforts to expand online and to streamline manufacturing, and is trying different store formats to try to meet changing shopper expectations and take on new competition.

“I look forward to working with Jesper as we take our next steps in becoming the world’s leading multichannel home furnishing retailer,” said Lars-Johan Jarnheimer, chairman of IKEA Group’s parent company INGKA Holding.

Agnefjall, who became CEO in 2013, said that after 22 years at the firm, he would take some time off with his family before embarking on his next venture.

“While I am sad to see Peter leave after many years of service, I respect his decision,” Jarnheimer said.

IKEA Group, a franchisee to Inter IKEA Group which owns the brand, had sales of 34.2 billion euros ($38.3 billion) in its fiscal year through August 2016, up 7% from the previous year, helped by new store openings and increased online sales.

It targets 50 billion euros in sales in 2020.

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