In Davos, Switzerland on Jan 20, Reuters reported that the CEO of Ingka Group, the largest global IKEA franchisee, emphasized the importance of reduced trade tariffs for businesses like IKEA in light of potential U.S. tariff increases under President Donald Trump. Jesper Brodin highlighted the benefit of harmonized tariffs for international companies, expressing that fewer tariffs create a more favorable business environment by avoiding cost burden on customers.
Reflecting on recent challenges for consumers caused by inflation and high interest rates, Brodin remarked on the positive trend in consumer demand and expressed optimism for the future, indicating a return to more regular consumption patterns.
Notably, Ingka Group, overseeing IKEA stores in 31 countries and responsible for 90% of global IKEA sales, reported an increase in sales following strategic price reductions to attract inflation-affected shoppers back to IKEA stores.
Brodin underscored climate change as a major concern, emphasizing the necessity for global cooperation in addressing environmental challenges. He disputed the notion that climate change mitigation would be economically detrimental, citing IKEA's experience to the contrary.
Brodin conveyed the urgent need for accelerated action on climate change, urging collaboration among businesses, government leaders, and peers to drive the necessary transformations.