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How IKEA expands within an existing market

Insights from Remco Hempenius, Global Business Leader at IKEA

Remco’s been with IKEA for over two decades, living in multiple countries and helping the brand grow in smart, sustainable ways. We sat down with Remco to unpack how IKEA expands into existing markets and how social entrepreneurs can learn from our playbook. His advice? Start with people, stay grounded, and don’t rush the next step.

1. Start with people, not places

IKEA’s approach to expansion starts with what we call “people potential.” The question isn’t where should we grow, but who could we reach that we’re not reaching today? We look at where people live, how they shop, and how IKEA can meet real needs in those daily lives. Growth isn’t about chasing territory—it’s about showing up in meaningful ways for more of the many people.

2. Take care of your house before building an extension

One of our golden rules: don’t expand if you haven’t taken care of what you already have. Whether it’s improving the experience in existing stores or rethinking how we use our space, we always start by strengthening our current set-up. Remco says it clearly: expansion without a strong foundation may bring short-term wins, but it won’t lead to sustainable growth.

3. Adapt your strategy to meet customer needs

When the world changes, so should your growth strategy. As lifestyles shift and cities grow denser, IKEA is reshaping its model to meet people where they are, whether that’s in urban centres, on their phones, or in compact neighbourhood hubs. It’s about being accessible, convenient, and relevant to our customer’s everyday lives. 

4. Experiment (but with purpose)

From leasing furniture to smaller-format stores, IKEA is testing new models that align with how people want to live today. These experiments aren’t just about being trendy. They’re about sustainability, affordability, and meeting people’s changing needs. Tests like furniture-as-a-service, for example, are already showing positive results and helps us support more circular lifestyles and extend the life of our products. 

5. Growth doesn’t mean going global

Sometimes the best next step isn’t a new country, it’s a deeper presence where you already are. Remco encourages entrepreneurs to build strength and brand recognition locally before leaping across borders. Understand your city, your customers, and your logistics. Then decide if it’s time to go bigger or just go deeper. 

6. Numbers matter, but people matter more

Yes, IKEA looks at market share and sales volume, but only as tools to help reach more people. The bigger vision? Offer well-designed home furnishings at prices people can actually afford. When we sell more, we can produce more efficiently and offer even lower prices. That’s always been part of our DNA. At the same time, we know that impact matters, so we’re also exploring new business models like renting, reusing, and refurbishing. Always keep your customers and the people you serve in mind when thinking about expansion opportunities. 

7. Know your limits and your strengths

Just because you founded something doesn’t mean you have to scale it alone. Remco points out that the skills needed to start a company aren’t always the same ones needed to grow it. Whether it’s adding new capabilities to teams or partnering with others, stay open to learning and adapting. It’s not about ego, it’s about what the business needs to grow well. 

Final thought

Grow intentionally. Stay human. Know your foundation. Whether you’re opening your second location or dreaming of global reach, sustainable expansion starts with knowing who you are and who you're here to serve. 
 

With special thanks to Remco Hempenius, who at the time of the interview was a Global Business Leader at IKEA