Ikea is certainly one of the big names in the retail sector, with large stores around the world and a thriving online business. Recently, Ikea made headlines by investing in the kitchen planning company Traemand. The company behind Ikea Retail is actually Ingka Group, which also owns Ingka Centres and Ingka Investments.

The Acquisition and Partnership

In a recent move, Ingka Group, the force behind Ikea, acquired 49 percent of the U.S.-based Traemand, complete with an option of buying the remaining shares. This is not a new partnership since Ikea Retail U.S. and Traemand have been partners since 2005, recently expanding the partnership into Canada.

In the previous partnership, Traemand provided systems as well as tools that simplified kitchen projects. Thanks to the investment, Traemand will be able to expand its concept of kitchen services beyond just the United States and Canada. The company will keep its current management.

Part of a Trend of Acquisitions

This is not the only semi-recent acquisition by Ingka Group. Ikea Group, which Ingka Group wholly owns, acquired TaskRabbit in September 2017. Since then, it expanded services into the U.K. as well as 40 American cities.

Expanding the Services of Ikea

Retail experts see the recent acquisitions of Ikea, both TaskRabbit and Traemand, as responses to the idea that Ikea furniture can be challenging to assemble. These experts feel that these expansions are designed to appeal to consumers who lack the patience to put together the sometimes-complicated furniture. Additionally, the services from Traemand will make it possible to deliver a more customized appearance to some of the more generic Ikea items. Traemand’s services can also help save renovations, which are in danger of being abandoned due to the overwhelming amount of choices. The only thing lacking in this recent investment from Ikea is a push toward higher-quality materials, which many millennials care about.

Source:

https://www.retaildive.com/news/ikea-invests-in-kitchen-planning-company-traemand/544959/

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