Ingka Group, the holding company that operates most IKEA stores globally, has appointed as its next chief executive, Juvencio Maeztu, the first non-Swede to lead the group.
Effective Nov. 5, Maeztu will succeed Jesper Brodin, who is stepping down after eight years. Under Brodin, Ingka Group weathered the Covid-19 pandemic and global trade challenges while expanding IKEA’s e-commerce business and setting new emissions reduction targets.
The incoming CEO will be tasked with charting a renewed strategy for growth following price cuts designed to ease cost-of-living strains on shoppers that drove down revenue and profits.
Born in Cádiz in the south of Spain, Maeztu, 57, who does not speak Swedish, began his career as the manager of IKEA’s Alcorcón store in Madrid in 2001, moving to its Sevilla location in 2003, before being promoted to country resources manager for Spain and Portugal. In 2009, he returned to store operations, taking charge of IKEA’s flagship location in London’s Wembley district. It was not until 2012 that he entered the executive ranks, when he was appointed chief executive of IKEA India. In 2018, he became deputy CEO and CFO of the group’s holding company.
As CEO, Maeztu will oversee nearly 400 IKEA stores, which account for roughly 80% of the retailer’s global network and approximately 90% of total sales across 30 countries. After an extended period of rising costs due to raw materials, commodities, and logistics issues, the furniture giant cut wholesale prices by an average of 15% last year to help its retailers lower prices for consumers. Store visits increased by 3% and online orders grew by 9%. Yet, by the end of fiscal 2024, overall retail sales had declined by 5.3%, revenue dropped by about 9%, and net profit was nearly halved to €806 million (about $942 million).
The challenge for Maeztu will be to reconcile competing objectives.
On the one hand, says Anna Jonsson, associate professor and senior lecturer in business administration at Stockholm University, he must try to hold prices down at a time when rival retailers are warning that tariff costs could be passed on to consumers; on the other, he will have to continue expanding IKEA’s global footprint while meeting financial targets.
“Then again, balancing acts are part of the IKEA culture,” says Jonsson. “It is in the company’s DNA to constantly explore new ideas while acknowledging proven solutions.”
